Iran Oil Ministry grants feed permits

Iran Oil Ministry grants feed permits
(Tuesday, May 2, 2023) 15:18

TEHRAN (NIPNA) -- Iranian Minister of Petroleum, Javad Owji, spoke at the 14th Iran Petrochemical Forum and highlighted the importance of ensuring sustainable feed supply for the country's petrochemical projects.

He pointed out that the industry currently has 70 active complexes with more than $80 billion invested, and nearly 107 other projects in various stages of development that require similar capital.

Owji also emphasized that one of the government's priorities is to increase oil and gas production and build more petrochemical complexes to ensure energy security and add value.

To support the stable supply of feed for industries, Owji announced that the Ministry of Petroleum has granted grace period permits for feed to eight petrochemical projects during construction and after completion.

This year, the permits granted will inject around $500 million for the construction of Mehr Persian Gulf Petroleum Refinery. Owji assured investors and activists in the field that the Ministry of Petroleum is committed to supporting the development of the value chain in the petrochemical industry by providing sustainable feed, long-term contracts, attractive markets, access to technical knowledge, and suitable infrastructure.

Owji also expressed his concerns about the export of raw petrochemical products, saying that 70% of the country's petrochemical products are exported in raw form, and only 30% are converted into added value in downstream industries. He urged investors to enter the field of value-added chain development, and emphasized that the Ministry of Petroleum is at the service of investors and activists in the field.

The Iranian Minister of Petroleum emphasized that the supply of feed is the main concern of petrochemical industry activists, and assured the industry that the support umbrella of the Ministry of Petroleum is open for the stable supply of feed for industries.

Owji stressed that the Ministry is working to increase the production of gas and oil and develop petroleum refineries to ensure the country's energy security and create added value.

The Minister's comments indicate that the government is committed to supporting the development of the petrochemical industry in Iran, and the industry can expect more support in the coming years.

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