could be a top priority for petrochemical sector.
Top Regional Spot
Iran aims to become the top petrochemical producer in the region by 2025and is currently exporting petrochemicals to more than 40 countries. Iran's landmark nuclear deal with six world powers and the ensuing lifting of sanctions have provided suitable conditions for Iran to benefit from 400-million-strong markets in neighboring countries. Given Iran's geopolitical position, these markets are highly significant. Iran is instrumental in meeting basic needs in other countries. After new development projects become operational by 2020, Iran's share of petrochemical production in the Middle East region would reach 41%.
Under Iran's 6th Five-Year Economic Development Plan, 55 million tonnes will be added to production capacity, while 33 petrochemical plants plus eight supply chains for the production of 60 types of products are planned.
Over the past 10 years, the pace of provision of infrastructure for investment in the petrochemical industry has been slowed down by sanctions. The Iranian government has tried its best to make up for losses. Petrochemical industry is key to increasing profitability and boosting Iran's status in economic ties in the region. The industry must be paid attention to more seriously as there are powerful rivals. In addition to gaining revenues from petrochemical industries, jobs will be created and welfare will be provided to underprivileged areas.
The government's new approach in developing petrochemical infrastructure is a sign of paying special attention to the infrastructure in this sector and increasing advantages. Given Iran's special conditions and its standing in energy commodity exchanges, as well as its hydrocarbon reserves and paying more attention to petrochemical industry is an important and strategic decision. By supporting the private sector, the government is paving grounds for the presence of Iranian and foreign investors. Iran's petrochemical industry has always been coherent enough to attract investment. Such advantages would turn Iran into a big petrochemical hub in the future to bring investors in.
Mohammad-Hassan Peyvandi, who heads a top petrochemical holding in Iran, says Iran enjoys all tools, capacities and necessary resources for a profitable petrochemical industry.
"No other country enjoys such advantages altogether. Therefore, our country enjoys a new and rare chance which no other investor does enjoy in the world," he said.
"Undoubtedly, improvement in Iran's international relations and attraction of more investment will promise a brighter future for the petrochemical industry," said Peyvandi.
By completing some 60 petrochemical projects, which are 10 to 90% complete, Iran's current petrochemical production capacity could be brought to 120 million tonnes.
Furthermore, by implementing 36 new projects which need $41 billion, the annual output capacity will exceed 180 million tonnes.
In the current calendar year to March 2018, the completion of four projects which had remained incomplete will add two million tonnes to the country's petrochemical production capacity.