He emphasized that greater participation of genuine private investors
and the use of innovative domestic financial instruments can accelerate the
industry’s growth and support import substitution.
Speaking at the International Conference on Investment and Financing
in Oil, Gas, and Petrochemicals — attended by Parliament Speaker
Mohammad-Bagher Ghalibaf and senior officials — Abbaszadeh noted that Iran’s
installed petrochemical capacity stands at around 100 million tons, with $92
billion already invested in the sector.
He underlined that the petrochemical industry forms the most critical
value-adding link in the country’s oil value chain and that achieving the
targets of the Seventh Plan requires a strategic focus on completing specific
chains and producing currently imported petrochemical products, worth about $2
billion annually.
$26 Billion Needed for 66 Ongoing Projects
According to Abbaszadeh, 66 petrochemical projects are included in the
current plan, requiring approximately $26 billion to complete. “The average progress
of these projects has reached about 60 percent, with $13 billion already
invested,” he said, expressing optimism that the remainder will be secured
through increased focus and private-sector engagement.
Three Pillars of Petrochemical Development
The NPC chief identified stable feedstock, adequate investment, and secure
markets as the three key pillars of sustainable petrochemical development. He
added that ensuring a transparent and predictable business environment is
equally vital for attracting investors.
He revealed that over the next decade, 46 new projects with full
permits — including environmental and land-use approvals — are ready for
investment and will come online by 2033 (1412), requiring a total of $44
billion in funding.
Private Sector’s Share Only 15%
Abbaszadeh emphasized that despite nearly $90 billion invested in the
petrochemical industry to date, only about 15 percent has come from genuine
private investors. “Most investments have been made by public institutions,
pension funds, and semi-governmental holding companies,” he said.
He noted that private-led projects are typically executed in half the
time and at lower cost, whereas those managed by quasi-state entities often
suffer from delays and cost overruns. “This performance gap shows the
importance of enabling real private-sector participation,” he stressed.
Reinvesting Profits to Fuel Growth
Abbaszadeh referred to Article 45 of the Seventh Plan, which mandates
that at least 40 percent of petrochemical companies’ annual profits be
reinvested in downstream development projects. “Proper implementation of this
provision alone can trigger a major leap in investment and strengthen domestic
value chains,” he said.
He added that Iran’s petrochemical industry earns around $24 billion
annually — with $15–16 billion from exports and $10 billion from domestic sales
— but most profits are distributed among shareholders rather than reinvested.
Addressing Investment Challenges
Abbaszadeh highlighted several barriers to investment, including complex
licensing procedures, regulatory instability, and frequent changes in tax and
export policies, which have created uncertainty for private investors. “To
attract investment, the government must ensure a stable, predictable, and
transparent environment,” he said.
He also noted that while annual investment once averaged $4.5 billion,
it has recently fallen to $2.5–3 billion, mostly funded from internal
resources.
Turning to Domestic Financing Tools
With international financing still constrained, Abbaszadeh called for
the development of domestic financial instruments such as specialized
investment funds and capital-market-based mechanisms. “Universities, financial
institutions, and expert firms can help design and deploy modern tools to
secure sustainable funding for petrochemical projects,” he said.
He concluded that achieving the sector’s ambitious development goals
will depend on empowering the private sector, reforming the investment climate,
and innovating financing mechanisms to unlock Iran’s full petrochemical
potential.