n the downstream sector for development. It is possible to use state-of-the-art technologies and new foreign investment in this sector so that the value chain completion would pick up speed. Energy experts believe that investment in downstream industries would be certain and profitable; however, weaknesses must be removed and new plans must be arranged.Twofold Growth in RevenueExperts say if Iran’s petrochemical exports are set at about $20 billion annually, completion of the value chain in these products could double Iran’s hard currency income. Of course, financial estimates in the export sector should not be taken into account alone. Other advantages include transfer of knowhow and technology, which development projects desperately need. Export-oriented production has to be taken into consideration in negotiations with foreign companies. Everyone must move in the direction that new investments would help explore new markets. Iran’s petrochemical industry development is being formulated. Besides implementation of projects, feedstock supply and exports, special attention is paid to diversifying the value chain and supplying products which Iran has had to import.In the previous periods, diversification of production and completion of value chain had been focused upon in the petrochemical sector. But due to systematic complications, no favorable result has been achieved so far. On one side, no precise system has been developed to distribute materials needed for the development and completion of the value chain of the petrochemical industry, while on the other, inclination for petrochemical exports due to financial incentives has pushed the issue of exports to bold relief at petrochemical companies. This issue takes up added significance amid privatization of the petrochemical sector in Iran.Development and completion of the value chain in the petrochemical industry is significant on the grounds that it would activate job creation which has so far been ignored. The general belief, albeit wrong, has been that job creation would require building large-scale petrochemical plants. Since building a petrochemical plant would not create too many jobs despite high spending, petrochemical-based job creation is said to be costly. But when it comes to the development of downstream industries, the petrochemical sector becomes meaningful within the framework of a value chain. Ignorance of systematic approach has led most petrochemical plants to ignore their downstream needs and fix their eyes on export markets. That is why in many cases, the industries lying at the end of the value chain would prefer to use imported materials and polymers. By completing the value chain, it would be possible to activate the production sector and that is one solution to reducing industrial stagnation and bringing about economic prosperity.Ethane Output to Hit 10mt/yIran’s Petroleum Minister Bijan Zangeneh said Iran’s ethane production would reach 10 million tonnes a year this year. The extra ethane would be used to feed petrochemical plants. To that end, olefin units need to be constructed at a larger pace. The first phase of Bushehr Petrochem Plant’s olefin project, Ilam olefin, Sabalan methanol, Lordegan chemical fertilizer, Miandoab Petchem Plant, Sadaf Assaluyeh ASPR, Kaveh Methanol and Bid Boland gas refinery would add a total 12 million tonnes to Iran’s petrochemical production capacity.In order to reach a higher growth rate and achieve a bigger value-added in this sector, it would be necessary to take action for the development and completion of the value chain of petrochemical products and upstream products clusters including methanol and ethylene clusters and manufacturing of products of higher value-added. Certain measures have so far been adopted in this regard, but they are not sufficient in view of Iran’s oil and gas potentialities.Petchem Exports to 40 NationsA major objective sought in Iran’s Vision 2025 is for the country to become the top producer of petrochemicals in the region. Iran is already exporting petrochemicals to more than 40 nations. Thanks to a diplomatic charm offensive, it is possible to benefit from a 400-million-odd market in neighboring countries. These markets are of high significance in light of Iran’s geopolitical situation.Iran is instrumental in meeting the basic needs of other nations. By operating petrochemical development projects up to 2020 when Iran’s 6th five-year economic development plan ends, Iran’s share of petrochemical production in the Middle East would reach 41%. Under Iran’s 6th development plan, 55 million tonnes would be added to the production capacity.Iran is currently among the most secure countries in the region for domestic and foreign investment in the petrochemical sector. Incentives for investment in the petrochemical sector include infrastructure, rate of return on investment, high yield, growing demand in the region, knowledge-based industry, competitive circumstances for investment in the petrochemical sector, access to natural gas as feedstock and gas condensate, availability of skilled manpower, widespread communications infrastructure, sharing borders with 15 countries, establishment of special economic petrochemical zones, offering incentives to investors and the existence of a chain of petrochemical plants.Resilient economy policies could also provide legal support for development projects in the petrochemical industry. Making arrangements for using foreign financing and domestic banking facilities as well as the National Development Fund of Iran (NDFI) would help accelerate the petrochemical industry developmen