Iranian Lawmaker Says Parliament Backs Balanced Petchem Expansion

Iranian Lawmaker Says Parliament Backs Balanced Petchem Expansion
(Monday, August 24, 2026) 16:47

TEHRAN, August 21 (NIPNA) – Iran’s parliament strongly supports the balanced expansion of the petrochemical industry, a member of the Energy Commission said, highlighting the sector’s role in diversifying the economy, creating jobs and generating higher value from the country’s hydrocarbon resources.

Ramazanali Sangdovini said petrochemicals have emerged as a stable and attractive sector for investors and that further development could stimulate both large and small businesses across the downstream value chain.

“Petrochemical development can drive a broader expansion of businesses and create more employment in downstream industries,” Sangdovini said in an interview with NIPNA.

Diversifying Beyond Oil and Gas

Sangdovini pointed to Iran’s broader economic-resilience policies, under which expanding petrochemical production and exports has been identified as one way to reduce the economy’s vulnerability to fluctuations in oil and gas revenues.

He called for continued government and parliamentary support for petrochemical companies, arguing that the industry’s contribution extends beyond export earnings.

Petrochemical products serve as feedstock for a wide range of industries, making the sector an important link between Iran’s hydrocarbon resources and its broader manufacturing base.

Downstream Industry Seen as Employment Engine

Employment is another key benefit of petrochemical development, according to Sangdovini.

The activation of petrochemical projects is expected to create thousands of direct jobs at production complexes, while expansion across downstream industries could generate thousands more positions, according to industry officials.

The potential employment impact is particularly significant as Iran seeks to capture more value domestically by developing industries around petrochemical feedstocks rather than exporting hydrocarbons in less processed forms.

Higher Value Offers Resilience

Sangdovini said the industry’s ability to generate higher value from Iran’s hydrocarbon resources makes it particularly important under sanctions.

Petrochemicals, he argued, can provide a reliable economic support for Iran by combining export potential with domestic industrial demand.

The comments reinforce a broader policy direction in Iran’s petrochemical sector: moving beyond capacity expansion toward a more balanced model built around value addition, downstream development, employment and greater resilience to external economic pressure.

 


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