TEHRAN – Petrochemical projects under Iran’s Seventh National Development Plan are about 60 percent complete, with all first-year targets for the sector achieved in 2024, the head of the National Petrochemical Company (NPC) said.

Speaking at the first petrochemical industry investors conference in Tehran, NPC Head Hassan Abbaszadeh said the sector’s capacity is expected to reach 131.5 million tons by the end of the plan period.

He said total planned investment under the program stands at $26 billion, about half of which has already been realized, adding that projects covered by the plan have reached roughly 60 percent physical progress.

Abbaszadeh said the industry met 100 percent of its first-year targets in 2024 and posted solid performance in the first half of the current year, with an additional 7 million tons of capacity expected to come on stream by year-end through new start-ups.

He added that around 44 petrochemical projects have been identified for the subsequent development plan, with financing cited as a key priority for the sector.

Abbaszadeh said about 70 percent of Iran’s petrochemical output is exported, making the industry well suited for the creation of foreign-currency project funds. He noted that roughly 22 percent of installed capacity is currently idle, largely due to challenges in securing stable feedstock supply.

To address this, he said the industry is pursuing measures including flare gas recovery, upstream field development, expansion of renewable energy and energy-efficiency projects.

Abbaszadeh also said only about 15 percent of the petrochemical sector is currently owned by “real” private investors, with the remainder held mainly by pension funds. The Seventh Development Plan, he said, targets further divestment and greater private-sector participation.

He urged households to curb gas consumption during winter peak demand, noting that residential and commercial use can account for up to 80 percent of national gas output during cold months, constraining supply to industries such as petrochemicals.

EF/MA