Hassan Abbaszadeh, who also serves as chief executive of the National
Petrochemical Company (NPC), said private sector investors and major investment
groups expected licensing, financing and project implementation processes in the
petrochemical industry to become more efficient.
Speaking at the first Iran Petrochemical Investors Summit in Tehran,
Abbaszadeh said the seventh development plan places primary emphasis on
completing the petrochemical value chain, but underinvestment in upstream
segments has left around 22% of installed capacity idle.
“The target is to reach a stable capacity of 131 million tonnes,” he
said, adding that meeting this goal would require decisive action to secure
feedstock supplies and mobilise new investment.
Abbaszadeh said the investment requirement to meet seventh plan
objectives was estimated at around $26 billion, roughly half of which has
already been committed, with projects currently at mid-implementation stages.
Looking ahead, he said projects prepared for investment under the eighth
development plan would require about $44 billion in financing.
He outlined four key strategies to close the investment gap:
collecting flare gas, developing hydrocarbon fields allocated to petrochemical
companies, expanding renewable energy use, and improving energy efficiency in
household and public consumption. Iran has set a target to collect 1.5 billion
cubic feet per day of flare gas, some of which has already been brought on
stream, he said.
Abbaszadeh said only about 15% of petrochemical investment currently
comes from the “real private sector”, adding that the gradual withdrawal of
large funds and holding companies from direct operations, as mandated under the
seventh plan, created an opportunity to strengthen private sector
participation.
He said NPC was focused on accelerating the issuance and renewal of
preliminary investment approvals while carefully assessing the financial
capacity of investors to ensure projects proceed on a sound footing.
Abbaszadeh said performance in the first year of the seventh
development plan had been fully aligned with targets approved by parliament,
adding that preliminary assessments for 2025 showed solid progress. He said
around 7 million tonnes of new capacity could be added by year-end through the
commissioning of several development projects.
He highlighted new investment incentives under the seventh plan,
including foreign-currency project funds and Islamic financing instruments.
Petrochemicals, which export around 70% of their output and are net
foreign-exchange earners, offer a strong platform for such financing
structures, he said.
Abbaszadeh also cited the recent issuance of foreign-currency murabaha
bonds in cooperation with the central bank, the National Development Fund and
Tejarat Bank as a new financing channel for petrochemical projects.
He said only projects with guaranteed feedstock supply and full
regulatory approvals—including environmental and land-use permits—would be
introduced for public financing, stressing the need to safeguard public trust.
Abbaszadeh said investment in petrochemicals stimulates both upstream
and downstream industries, including contractors, equipment manufacturers and
engineering services, adding that Iran has achieved self-sufficiency in
engineering and consultancy capabilities.
He called on banks and economic authorities, particularly the finance
ministry, to give priority attention to the petrochemical sector, describing it
as a major source of foreign currency, employment and industrial development.
Abbaszadeh said improved energy efficiency, especially in household
gas consumption during winter, would help ensure stable feedstock supply for
petrochemical plants and support the sector’s long-term profitability and
resilience.
He expressed confidence that with investor participation and policy
support, Iran’s petrochemical industry would continue to serve as a key driver
of national economic growth.