TEHRAN – Iran produced 32 million tons of petrochemical products in the first five months of the current Iranian year to late August, with 13 million tons worth $5.5 billion exported, the head of the National Petrochemical Company (NPC) said.

Hassan Abbaszadeh, who also serves as deputy oil minister, told reporters on Wednesday that another seven million tons valued at $4.0 billion were sold in the domestic market.

He said the sector continued operating with minimal disruption despite recent unrest, adding that the industry gained important lessons from a recent 12-day conflict.

Abbaszadeh said NPC was prioritizing completion of development and infrastructure projects. He noted that 15 petrochemical production plants, four feedstock projects, three utility units and four infrastructure projects were planned to come on stream in 2025. Six projects, including the first phase of a flare gas recovery plant in East Karoun, are already completed and awaiting inauguration. Together they will add 2.7 million cubic meters of gas to petrochemical feedstock.

He put the total planned investment for 2025 projects at $6.0 billion, saying they would expand industry capacity by 9.8 million tons.

Despite a nominal capacity of nearly 100 million tons, about 22 percent remains idle due to feedstock shortages, Abbaszadeh said. A task force has been formed to tackle supply issues, while large petrochemical firms are being encouraged under the seventh development plan to invest in upstream gas fields.

The flare gas recovery drive is a key measure to secure feedstock, with many flares in oil-rich regions already being extinguished, he added.

Abbaszadeh said NPC had broadened its customer base, especially in Africa, with feasibility studies carried out for markets including India. Eleven inactive projects lost their permits, freeing up 14 million cubic meters of feedstock gas that has been redirected into the value chain.

He noted that petrochemical plants currently use only about 4.5 percent of Iran’s daily 700 million cubic meters of gas, compared to nearly half consumed by households and a quarter by power plants. Energy efficiency programs, including replacing household heaters and reducing gas and electricity consumption by 10 percent for 140,000 customers in five cold provinces, have helped sustain petrochemical output.

The official said NPC had taken preventive steps to protect coastal mangrove forests and would host a conference on plastic pollution on Saturday with Environment Organization chief Shina Ansari.

He announced that the 19th IranPlast exhibition would host about 750 domestic and 67 foreign companies, including direct participants from China and India. Some firms withdrew due to the 12-day conflict, missing final registration.

Petrochemical firms are also investing in power generation, including renewable projects. The Kaveh Methanol project has launched power units in Dayyer and Saveh, and a 600-megawatt wind farm is being installed in Sistan-Baluchestan, he said.

Abbaszadeh also confirmed that Bakhtar Petrochemical and Petrofarhang Holding will develop upstream gas fields with a 35 million cubic meter capacity, while other firms are studying participation.

On regulation, he said the NPC statute was under parliamentary review and called for the Competition Council to define regulators for the industry by the end of the current development plan.

He added that the Oil Ministry was pushing leadership renewal by discouraging contract extensions for senior managers, with succession plans requiring new appointments a year before retirement.

Abbaszadeh said new ethylene projects would come online by year-end, with tighter planning to ensure downstream units are completed quickly so that no excess ethylene is wasted.

EF/MA