Iran Petchem Firms Extend over $70 Trln Rials in Credit to Downstream Industries

Iran Petchem Firms Extend over $70 Trln Rials in Credit to Downstream Industries
(Sunday, December 28, 2025) 16:29

TEHRAN, Dec 28 (NIPNA)– Iranian petrochemical producers have extended more than 700 trillion rials ($70 trillion tomans) in credit sales to downstream industries since the start of the current year, the deputy petroleum minister and head of the National Petrochemical Company (NPC) said on Sunday.

Hassan Abbaszadeh said the credit supply, provided from March through late September, was expected to exceed last year’s total of 1.22 quadrillion rials by year-end, reflecting continued efforts to support downstream manufacturing.

Speaking on the sidelines of the first Petrochemical Industry Investors Conference in Tehran, Abbaszadeh said Iran’s petrochemical export plan for the year ending March 2026 stood at about $13 billion and expressed confidence the target would be met.

He added that more than 98% of foreign currency revenues generated by petrochemical companies had been repatriated to the domestic economy, with the remaining portion returned within an 80-day regulatory window under strict supervision.

“Since 2018, there have been no major issues regarding currency repatriation, and performance this year has improved compared with last year,” Abbaszadeh said.

He said urea had been removed from the list of semi-raw products subject to export duties, while levies on other products such as polypropylene and PVC had been reduced following industry consultations, as part of efforts to encourage value-chain development.

Abbaszadeh also provided an update on Iran’s first propane dehydrogenation (PDH) project, saying the Salman Farsi PDH unit had achieved more than 90% physical progress and was expected to enter production by June next year.

He said other PDH and propane-based projects, including Alay-e Mahestan, Hirsa Polymer Sahand, Pars Petrochemical PDH and Bidboland Persian Gulf, as well as units at Jam Petrochemical and Petro-Pardis Sina, were advancing steadily.

Abbaszadeh said developing downstream industries and value chains was a key objective of Iran’s seventh national development plan, adding that feasibility studies were being made available to private investors to facilitate project execution.

On foreign exchange policy, he said discussions were under way with the central bank to encourage petrochemical firms exceeding export targets to sell surplus foreign currency in Iran’s secondary FX market, alongside companies investing in flare gas recovery and energy efficiency projects.

He said major petrochemical projects scheduled to come on stream by the end of the year included the olefin and monoethylene glycol units at Bushehr Petrochemical, as well as polyethylene and olefin units at the Kangan petro-refinery complex.

Abbaszadeh added that winter gas supply constraints for petrochemical plants had been milder so far this year due to delayed cold weather and improved liquid fuel storage, though some facilities were experiencing managed, rotational curtailments.

“We hope gas restrictions this winter will be less severe than last year,” he said.

 


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