Iran Petchem Sector Generates $10b in Hard Currency Revenues

Iran Petchem Sector Generates $10b in Hard Currency Revenues
(Wednesday, January 15, 2025) 13:05

KISH ISLAND (NIPNA) — Iran’s petrochemical industry has earned $10 billion in hard currency revenues since the start of this calendar year, which began on March 21, with $8.5 billion supplied to the NIMA exchange platform, according to Ahmad Mahdavi-Abhari, Secretary-General of the Petrochemical Employers Association.

Speaking at the opening ceremony of the second “Iran Petrochem” exhibition, Mahdavi highlighted the industry's role in achieving the 8% economic growth target set in the Seventh Development Plan. He noted the inclusion of 49 petrochemical projects focusing on knowledge-based enterprises, requiring an estimated $24 billion investment. “So far, $12 billion has been invested, with another $12 billion still needed,” he added.

Expanding Production Capacity

Twelve of these 49 projects are slated for the Persian Gulf Holding. Once completed, these initiatives are expected to increase petrochemical production capacity from 96 million tons to 131.5 million tons. “Achieving this target will generate around $40 billion in wealth solely from petrochemical companies,” Mahdavi stated.

He projected that meeting the goals of the Seventh Development Plan would drive an annual 23% increase in non-oil exports, complementing the current contribution of the petrochemical sector, which accounts for 30% of Iran’s non-oil exports.

Private Sector Responsibility

Mahdavi emphasized the need for the private sector to independently address industry barriers. “Do not rely on the government; the private sector must resolve its obstacles,” he urged. Highlighting recent achievements, he noted that efforts by the Petrochemical Employers Association have helped alleviate feedstock challenges, enabling projects like Apadana and Hengam Petrochemical to move forward with sound economic justification.

Gas Field Development Initiatives

The association has signed 10 agreements to develop gas fields, three of which are nearing finalization. Mahdavi called on government officials to expedite the execution of upstream contracts. “If fully implemented, these agreements will add at least 220 million cubic meters per day to the country’s gas capacity,” he said.

Foreign Currency Contributions and Domestic Investment

Mahdavi revealed that the petrochemical industry had injected $8.5 billion into the NIMA exchange and commercial currency markets while spending an additional $2 billion on domestic expenses. “Overall, about $10 billion in foreign currency has been realized so far, and this figure is expected to rise by year-end,” he said.

Iran Petrochem Exhibition

The second “Iran Petrochem” exhibition, themed “Supporting Knowledge-Based Production,” runs from Jan. 13 to Jan. 15 at the Kish Island International Exhibition Center. More than 140 petrochemical companies, knowledge-based enterprises, and technology firms are participating in the event, which is open daily from 5 p.m. to 10 p.m.

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