Iran Petchem Sector Outlines Three Strategies to Curb Energy Use, Industry Official Says

Iran Petchem Sector Outlines Three Strategies to Curb Energy Use, Industry Official Says
(Sunday, December 21, 2025) 16:24

TEHRAN, Dec 21 (NIPNA) – Iran’s petrochemical industry must pursue three key strategies to address energy imbalances and cut gas consumption, the head of the sector’s main employers’ association said on Sunday.

Ahmad Mahdavi Abhari, secretary general of the Association of Petrochemical Industry Employers, said the priorities were public participation in energy management, reforming consumption patterns through sustained cultural change, and investment in new gas fields and flare gas collection.

Speaking at a ceremony marking the signing of agreements on energy-saving projects, Mahdavi Abhari said part of Iran’s petrochemical capacity remained idle, causing significant economic losses.

He said the sector currently consumes about 25 billion cubic metres of gas per year, while full utilisation of its nominal capacity of around 96 million tonnes would require roughly 33 billion cubic metres annually. The gap reflects about 23% unused capacity, around 60% of which is due to feedstock shortages, he said.

Mahdavi Abhari estimated the annual value of this unused capacity at around $20 billion, adding that it represented a major missed opportunity for the economy.

Citing official data, he said Iran lost about $1.4 billion in exports last year due to gas shortages, equivalent to roughly 2.5% of the country’s total non-oil exports. Under Iran’s Seventh Development Plan, non-oil exports are expected to grow by 23% annually, a target in which the petrochemical sector could play a significant role, he said.

He said investment in flare gas collection would not only reduce environmental pollution but also prevent the waste of national resources and generate added economic value.

Mahdavi Abhari added that ongoing projects were progressing rapidly and said the petrochemical industry had taken “significant steps” towards improving energy efficiency, with cooperation agreements expected to further strengthen efforts to optimise energy use.

 


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