NPC Chief: Digital Transformation, AI to Define Industry Future

NPC Chief: Digital Transformation, AI to Define Industry Future
(Monday, October 20, 2025) 16:58

TEHRAN, Oct 20 (NIPNA) — Iran’s deputy petroleum minister and head of the National Petrochemical Company (NPC) said digital transformation and artificial intelligence (AI) will shape the future of the country’s petrochemical industry, calling them key to smarter, more efficient growth.


“With the expansion of AI applications and the strengthening of digital infrastructure, we can guide the petrochemical industry’s development more intelligently and effectively,” Hassan Abbaszadeh said on Monday at the “Digital Maturity Assessment of Industries and Businesses under the Seventh Development Plan” event. “Using real-time data and modern technologies enables more accurate decision-making, better market forecasting, and more efficient investment planning.”

Abbaszadeh noted that while advanced industries worldwide have widely embraced AI, Iran’s petrochemical sector has yet to reach a desirable level of digital maturity. Under the country’s Seventh Development Plan, the Ministry of Petroleum is tasked with advancing digital transformation and technology integration across the oil, gas, and petrochemical sectors.

“We still have a long way to go,” he said. “In our petrochemical industry, data is not yet fully collected in real time, and much of it is recorded manually. This limits our ability to make timely and data-driven decisions.”

The NPC chief recalled earlier years when petrochemical complexes operated with minimal connectivity. “In those days, daily production data was faxed to Tehran at dawn, stored in files by 6 a.m., and reviewed by managers at 8 a.m. for planning the day’s operations,” he said.

He explained that the new development plan mandates the installation of smart mass-measuring devices throughout the oil and gas value chain to enable real-time data collection and transmission. “This will ensure that data on production, refining, and conversion is accurately tracked across all stages, supporting informed managerial decisions,” Abbaszadeh said.

Fragmented data systems hinder integration

Abbaszadeh said data collection within Iran’s petrochemical sector remains fragmented and “island-like,” with insufficient integration among systems. The sector, he added, also requires secure data transmission frameworks due to its high operational and security risks.

“One major challenge is the lack of full integration between industrial control systems (DCS) and information technology systems (IT and OT),” he said. “Privatization has further fragmented the data and management networks across petrochemical companies and holding groups.”

He recalled that when the industry operated under a unified structure, warehouses across key industrial hubs such as Assaluyeh, Mahshahr, Tabriz, and Isfahan were digitally connected. “If one complex had a spare part in stock, another could use it without placing a new order,” he said. “After privatization, these connections disappeared, leading to higher costs and lower efficiency.”

Reintegrating these systems, Abbaszadeh argued, is one of the main goals of NPC’s new digital transformation strategy. “One of the major outcomes of digitalization can be restoring synergy and reducing costs through reconnecting data and operational systems across the industry.”

AI to drive strategic and market insights

Abbaszadeh emphasized that the goal of data integration is to harness the value of existing corporate information through intelligent analytics. “The question we must answer is: where exactly can AI create value in the petrochemical industry?” he said. “AI can help us identify new markets, analyze global trends, and guide the development of new petrochemical units.”

“By leveraging AI, we can forecast the future of the industry more precisely and make investment decisions based on scientific analysis and market needs,” he added. “This ensures that our future expansions are grounded in real demand and competitive advantage.”

Education and social cooperation

Abbaszadeh also said NPC has begun new cooperation projects with the Ministry of Information and Communications Technology (ICT) to promote digital equity. “Following the president’s directive, the petrochemical industry has been tasked with supporting educational justice and the digitalization of schools,” he said. “This initiative is being pursued jointly with the ICT ministry, and its outcomes — expected in the coming months — will deliver significant benefits for the nation’s children.”

 


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