TEHRAN – Iran’s National Petrochemical Company (NPC) requires nearly $18 billion in investment to overcome challenges and unlock the full potential of its petrochemical industry, a senior official said, underscoring the critical need for a stable supply of feedstock.

Hassan Abbaszadeh, the company's managing director and a deputy oil minister, said at a strategic meeting on the revival of the Dehloran petrochemical project that the country’s installed petrochemical capacity currently stands at about 97 million tons.

“We hope to surpass this figure and celebrate reaching 100 million tons this year,” he said.

Abbaszadeh noted that while over $90 billion has already been invested in the sector, around 22 percent of the installed capacity remains idle due to feedstock shortages. “This is one of the key challenges facing the industry,” he said.

Under Iran’s Seventh National Development Plan, the country aims to increase its petrochemical production capacity to 131 million tons. Abbaszadeh said this expansion is being pursued across various value chains, with a focus on creating balance between downstream and upstream development.

He emphasized that the lack of such balance in recent years has led to feedstock supply issues for several complexes. “Stable feedstock supply is a central pillar of the Seventh Plan, and our goal is to develop production capacity and feedstock sources in parallel,” he added.

To address the shortfall, NPC plans to source feedstock from multiple channels, including the recovery of flare gas — a short-term strategy that also benefits the environment.

Abbaszadeh identified the key flare gas recovery zones as West Karoun, East Karoun, Dehloran, and Ilam, which together account for about 75 percent of Iran’s flared gas. Projects in these areas are underway, including NGL 3100, which is expected to be operational in the coming months.

The expansion of the Bidboland Persian Gulf Gas Refinery under the Persian Gulf Holding is also in progress. It aims to eliminate around 55 gas flares, with 14 slated to be extinguished this year. In addition, Phase 2 of the Hoveyzeh Persian Gulf Gas Refinery (NGL 3200) is being developed, and by the end of next year, roughly 80 percent of associated flare gas is expected to be recovered and redirected to the petrochemical sector.

Abbaszadeh reiterated that securing feedstock remains NPC’s top priority. “With coordinated efforts across various agencies and implementation of targeted programs, we aim to minimize idle capacity and elevate Iran’s petrochemical industry to a strategic position in line with our long-term development goals,” he said.

EF/MA