NIPC Plans to Produce $2bn Worth of Petrochemical Imports Locally

Iran plans to replace around $2 billion worth of petrochemical imports with domestically made materials under its Seventh and Eighth Development Plans, said Deputy Oil Minister for Petrochemicals Hassan Abbaszadeh.

Abbaszadeh, who also heads the National Iranian Petrochemical Co. (NIPC), said imported petrochemical products that downstream industries often struggled to source would soon be churned out locally. “Some $2 billion worth of petrochemicals are imported annually,” Abbaszadeh told the International Conference on Investment and Financing in the Oil, Gas and Petrochemical Industry in Tehran, according to Shana.

“We have targeted these products for local production under the Seventh Development Plan (SDP), with the remainder to be rolled out during the Eighth Development Plan,” he added, referring to two roadmaps that outlines Iran major policies in economy, security, education and foreign policy among others in the next nine years.

The official noted that 66 projects were slated for completion by March 2029 under the SDP, requiring around $26 billion in investment. “These projects… are, on average, about 60% complete. So far, some $13 billion has been invested in them, and satisfactory progress has been achieved,” he added.

The deputy oil minister underscored that ensuring a stable feedstock supply, attracting necessary investment, and securing reliable markets for petrochemical products were essential to sustaining growth in the sector. He also called for a “calm and stable business environment” to encourage private sector investors.

“The focus of the petrochemical industry is on attracting investment from the genuine private sector,” he said, noting that of the nearly $92 billion invested in the sector to date, only about 15% of which came from private investors.

According to Abbaszadeh, 46 new petrochemical projects are ready for investment over the next decade. The SDP calls for expanding the country’s annual petrochemical production capacity to 131 million tons, which now hovers around 100 million tons, with a particular focus on completing specific value chains that have remained underdeveloped.