Investing $87 billion in the country’s petrochemical industry

According to Energy Press, according to the latest statistics announced in 1403, the production capacity of the petrochemical industry is on the verge of reaching 100 million tons, which is expected to increase in line with the goals of the Seventh Development Plan and the measures of the National Petrochemical Company. As seen in the Seventh Development Plan, the annual production capacity of petrochemicals should reach 131 million tons. This plan, emphasizing the reduction of crude sales, the development of downstream industries, attracting investment, and increasing productivity, aims for this industry to achieve an annual growth of 8 percent. Therefore, the petrochemical industry needs to attract domestic and foreign investments to achieve these development goals, a significant part of which has been met so far. Hamidreza Ajami, Investment Manager of the National Iranian Petrochemical Company, said that the National Iranian Petrochemical Company has succeeded in creating a capacity of about 97 million tons with an investment of $87 billion in this industry, which will soon reach 100 million tons. In a report published in the monthly magazine Iran Petroleum, the Investment Management of the National Petrochemical Industries Company introduced investment opportunities in the Iranian petrochemical industry,
The necessity of using foreign resources
The petrochemical industry is one of the most important parent and key industries available globally and domestically, which supplies the needs of a wide range of downstream industries. Developing and expanding the capacities of the petrochemical industry through attracting domestic and foreign investment can play an effective role in the country’s industrial and economic growth and development and improving indicators such as gross domestic product, trade balance, per capita income, etc. Although today the use of domestic resources (such as the National Development Fund, the Central Bank, financial institutions, etc.) for investment and development is considered, as Ajami says: “The use of these resources allows for limited growth, which in the short term causes a lack of competition and lagging behind other countries, so in my opinion, from a scientific point of view, foreign resources should be used, of course, taking into account the degree of risk and its considerations. This is especially important given the international efforts to isolate Iran.” According to the investment manager of the National Petrochemical Industries Company, in addition to the investments made in the petrochemical industry, 142 projects are currently being implemented with an investment amount of more than $102 billion and a production capacity of more than 132 million tons per year.
Investment opportunity in projects with more than 40 percent progress
According to the National Petrochemical Industries Company’s investment management estimate, the projects targeted under the Seventh Petrochemical Industry Development Plan require about $24 billion in investment, and approximately $12 billion has been spent on these projects; they are in fact projects that have an average of more than 40 percent progress and will be put into operation in the Seventh Plan by attracting and spending approximately $12 billion more. Referring to the amount of investment required for the National Petrochemical Industries Company’s plans to increase production in 1404, Ajami explains: “The projects of the Eighth Petrochemical Industry Development Plan also require about $10 billion in investment, so the total of the Seventh and Eighth Petrochemical Industry Development Plans requires $22 billion in financing from domestic and foreign sources.”
Specialized Petrochemical Events; An opportunity for investors to become familiar with existing opportunities
He explains how investors can become familiar with existing opportunities: “The effort is to introduce investment opportunities in the petrochemical industry in a specialized manner in 1404 at events specific to the petrochemical industry, including exhibitions and conferences such as the Oil, Gas and Petrochemical Exhibition and the IPF Conference. Appropriate plans are also being made to hold the second Petrochemical Industry Investment Conference, one of the main parts of which will be to introduce economic investment opportunities in order to attract investment applicants. Studies have also been conducted to attract domestic and foreign capital, including the establishment of financial institutions with the aim of providing capital in investment management, which will be possible to implement if ambiguities are resolved.”