Iran Petchem Industry Revamps Inactive Projects to Boost Value Chains

Iran Petchem Industry Revamps Inactive Projects to Boost Value Chains
(Wednesday, August 23, 2023) 23:26

TEHRAN (NIPNA) -- In a bid to bolster its petrochemical sector, Iran's Deputy Minister of Petroleum and the CEO of the National Petrochemical Company announced the conversion of inactive petrochemical projects into value chain initiatives.

Morteza Shahmirzaei unveiled the government's move to reassess stagnant petrochemical projects, underscoring a strategic pivot towards value chain-centric endeavors during the thirteenth administration.

Shahmirzaei disclosed that licenses for approximately 10 to 15 inactive projects were nullified, with some of these ventures being restructured as value chain-oriented initiatives.

Speaking at a meeting with the Energy Commission members and the Minister of Petroleum, Shahmirzaei acknowledged the imminent sixtieth anniversary of Iran's petrochemical industry.

He emphasized that the primary objective of fostering a value chain approach was to diminish reliance on raw material exports and augment value addition. Shahmirzaei lauded substantial progress over the last two years in realizing this objective.

Shahmirzaei affirmed that the central strategy of the thirteenth administration within the Ministry of Oil is the culmination of the petrochemical industry's value chain. This approach aims to ensure self-sufficiency across the entire supply chain, from raw materials to the final products, in this critical sector.

The CEO of the National Petrochemical Company commended rigorous efforts taken to fortify the petrochemical industry's value chain.

He revealed that the Development and Completion Document outlining the industry's value chain had been introduced as the principal development roadmap during the Ordibehesht month (April-May). This strategic document was disseminated to all petrochemical industry holdings, exhorting them to align their strategies accordingly.

Expounding further, Shahmirzaei revealed that licenses for inactive petrochemical projects underwent reassessment during the thirteenth administration. This review resulted in the revocation of licenses for approximately 10 to 15 inactive projects. Projects with upstream feedstock dependencies and energy imbalances were transformed into value chain-oriented initiatives.

Shahmirzaei also spotlighted the administration's focus on nurturing knowledge-based enterprises, a key facet of the ongoing policy agenda. He affirmed that domestic production of all catalysts utilized in the petrochemical industry would be achieved by the end of the thirteenth administration.

As Iran's petrochemical sector seeks to elevate efficiency, augment value addition, and mitigate dependence on raw material exports, these strategic shifts underscore a significant stride towards a more robust and self-reliant petrochemical industry, aligning with broader economic imperatives.

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