Iranian Petchem Industry Pushes for New Investment Packages in 7th Development Plan

Iranian Petchem Industry Pushes for New Investment Packages in 7th Development Plan
(Thursday, December 28, 2023) 15:56

TEHRAN (NIPNA) -- Morteza Shahmirzai, the Deputy Minister of Petroleum and Managing Director of the National Petrochemical Company (NPC), emphasized the formulation of appropriate investment packages for the petrochemical industry within the framework of the 7th Development Plan.

He stressed the need for market players and investors to adopt innovative financial strategies to alleviate the financial constraints and bottlenecks faced by the industry.

During the inaugural Investment Summit in the petrochemical sector held today (Wednesday, the 6th of Dey), Shahmirzai extended condolences for the loss of Commander Seyed Razi Mousavi, acknowledging the critical role played by such figures in ensuring the stability and security necessary for the oil, gas, and petrochemical industries, especially in border and oil regions, creating a secure environment for investment.

Shahmirzai encouraged intellectuals participating in today's panel discussions to candidly address pertinent issues, aiming to derive novel conclusions and theories by day's end, facilitating the next steps toward progress.

"Currently, over 97% of the global industry is directly or indirectly associated with the petrochemical sector," Shahmirzai asserted, underlining the industry's increasing role in global life due to the scarcity of natural resources, thereby pushing humanity toward manufacturing.

Regarding the nation's hydrocarbon reserves, he highlighted Iran's considerable reserves of liquid hydrocarbons equivalent to 1.1 trillion barrels and accessible oil reserves of 156 billion barrels and 32 trillion cubic meters of natural gas, emphasizing the significant potential these reserves offer to Iran.

Shahmirzai also noted the crucial shift toward self-sufficiency in catalyzers and chemical initiators, a concern addressed since the 7th of Dey 1400, during the government's tenure. Efforts are underway to indigenize these components by the end of the administration.

Recognizing the pivotal nature of the petrochemical industry in Iran's development, Shahmirzai portrayed financial procurement as a professional and specialized task. Given the economic pressures exerted by antagonistic nations via banking sanctions, he urged financial professionals, market specialists, and diverse investors present at the summit to engage in discussions about resolving the industry's financial bottlenecks, highlighting the sector's potential profitability for investors and the nation upon completing the value chain.

Elaborating on the developmental progress, he informed that the Seventh Development Plan, currently undergoing final approvals, includes the finalization of the petrochemical industry's development, paving the way for the Eighth Plan.

"The petrochemical industry is at the forefront of Iran's development," Shahmirzai affirmed, indicating the ongoing formulation of a 20-year development document and its pivotal role in shaping a 50-year vision for the industry.

Furthermore, Shahmirzai underscored the importance of manufacturing all petrochemical products domestically, expressing gratitude for the endeavors of domestic and international elites and urging them to transfer technological knowledge developed abroad to Iranian industrialists.

He highlighted the significant progress in procuring over 85% of petrochemical equipment domestically, foreseeing complete self-sufficiency within the next three to four years. Shahmirzai also emphasized the need to plan and scrutinize the establishment of climate-adapted chemical industries in Iran's eastern regions.

The recent surge in demand for domestic petrochemical products, particularly the over 40 trillion rial ($400 million) credits offered in the past six months, further illustrated the growing purchasing power of downstream units, signifying a step towards revitalizing hundreds of stagnant industries and resolving their perennial financial liquidity issues.

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