TEHRAN – Iran’s National Petrochemical Company (NPC) is planning the fourth leap of the petrochemical industry, based on which the country’s petrochemical revenues are expected to reach $50 billion by the Iranian calendar year 1406 (starts in March 2027), according to NPO Managing Director Behzad Mohammadi.

“By completing the projects defined in the second and third leaps, and the implementation of strategic projects defined in the fourth step of the smart development of the petrochemical industry, achieving a goal of generating $50 billion of revenue can be realized in the horizon of 1406,” Shana quoted Mohammadi as saying on Monday.

Speaking at the unveiling ceremony of the NPC’s new portal, Mohammadi noted that 47 major projects have been defined to be implemented in the fourth leap of the petrochemical industry.

“For the fourth leap, a total of 47 new projects have been defined and classified into three sections: combined feed projects, new propylene production projects, and pioneering projects. With the implementation of the fourth leap projects by 1406, the cumulative investment in the country’s petrochemical industry will reach $ 125 billion,” he said.

He further mentioned the increasing demand for feedstock in the industry saying: “We received about 40 million tons of feed equivalent to one million barrels of crude oil per day worth $6 billion from the oil industry in the previous [Iranian calendar] year (ended on March 20), which was consumed in 67 petrochemical complexes.”

With the projects of the third leap going operational in the Iranian calendar year 1404 (starts in March 2025), the petrochemical complexes’ feed demand will reach the equivalent of 2.3 million barrels of crude oil per day, he added.

Mohammadi noted that despite the restrictions caused by the coronavirus pandemic in the previous year, the development goals of the petrochemical industry were completely achieved, saying: “Last year, 25 million tons were added to the country’s petrochemical production capacity and 34 million tons of final products were produced, Which generated $15 billion in revenue.”

According to the NPC head, there are currently 50 petrochemical projects underway across the country that will be operational by the end of 1404 and increase the annual production capacity of petrochemical products to 135 million tons.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the export of such products is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

Facing the restrictions that the unjust U.S. sanctions brought about for the oil industry, its development has not been halted and, with a change in strategies, the Oil Ministry has been distancing itself from crude selling and is moving toward the production of products with more value-added.

One of the major areas for the realization of this goal has been the petrochemical industry, where a wide range of valuable products can be produced from Iran’s vast oil and gas resources.

EF/MA