The policy shift signals a fundamental change in the industry’s
approach, emphasizing a thorough completion of the value chain, revisiting
development plans, restructuring investment, and optimizing the use of
available resources. A roadmap focusing on reducing crude export reliance and
boosting productivity could open a new phase for Iran’s petrochemical sector,
the agency said.
Historically, a large portion of Iran’s petrochemical output has been
exported as feedstock or semi-finished products. About 70 percent of
petrochemical products are not absorbed domestically, a trend driven by
insufficient downstream infrastructure that has pushed the country toward
exporting more raw materials.
Separately, energy allocation remains a challenge, particularly in
winter, with restrictions on gas feedstock for methanol and urea units. NPC
said energy management measures could improve feedstock supply to petrochemical
plants, helping to accelerate project ramp-ups and production.
Downstream development is another central pillar of the policy,
converting base products into consumer and industrial goods to create jobs
across provinces and unlock broader value creation. If implemented effectively,
the sector could act as a driver of industrial development rather than merely
exporting raw materials.
Experts say success hinges on a coordinated effort among the administration,
parliament, private sector, and financial institutions. Key steps include
making strategic decisions, pruning inefficient projects, targeted support for
investors, and streamlined financing channels to accelerate implementation.
Market access and economic diplomacy are also highlighted as crucial
to sustaining growth. Domestic demand alone cannot absorb all downstream
products, making exports essential. Long-term contracts, regional cooperation,
and enhanced participation in regional transit corridors are viewed as vital to
expanding the market for petrochemical downstream products, alongside branding
and adherence to international standards.
Ultimately, proponents argue that developing a deeper value chain is
not only an economic necessity but a strategic imperative for energy security,
employment, and sustainable value creation. The emphasis is on shifting from
exporting base materials to producing a broader range of refined products,
supported by precise planning, smart policy, infrastructure upgrades, targeted
financing, and technological collaboration.