Hassan Abbaszadeh, who is also deputy petroleum minister, said the
talks were designed to encourage companies to invest in optimising gas
consumption and expanding the output of value-added products.
Speaking at the signing of a cooperation memorandum on energy
consumption management, Abbaszadeh said achieving the targets of Iran’s Seventh
Development Plan was of strategic importance, describing it as a national
roadmap for economic progress.
He said the country’s installed petrochemical capacity is projected to
reach 130 million tonnes per year under the plan, but part of the existing
capacity remains underutilised due to constraints, with an estimated value of
$20 billion to $28 billion.
Total investment in Iran’s petrochemical industry has exceeded $95
billion to date, Abbaszadeh said, adding that a further $24 billion is planned
under the development programme. Of that amount, around $13 billion has already
been spent on various projects.
Efficient use of existing capacity and investment is essential to
increase value creation and employment in downstream petrochemical industries,
he said, citing petrochemical-based pharmaceuticals as an example of a sector
with strong job-creation potential.
Abbaszadeh also highlighted flare gas recovery efforts, saying the
petrochemical sector currently collects about 1.5 billion cubic feet per day of
flare gas. The initiative reduces carbon emissions while enabling the gas to be
used for producing higher-value products and boosting national revenues.
He said negotiations with the Central Bank of Iran and other
institutions included proposed foreign exchange incentives and cooperation with
knowledge-based companies to support such investments.
On power supply, Abbaszadeh said one petrochemical company is developing
around 2,500 megawatts of power generation capacity, with much of it expected
to come online by the end of the year. The move is expected to ease energy
shortages and free up gas for industrial use.
Abbaszadeh said public trust, supported by transparent communication
and cooperation among investors, technology firms and planning bodies, was
critical to the success of petrochemical projects, adding that the public
remains the main beneficiary of the sector through employment, foreign exchange
earnings and economic stability.