NPC has formulated a comprehensive program to support Iran's downstream petrochemical sector. Addressing a conference in London on June 30th-1st July organized by the British-Iranian Chamber of Commerce, NPC president Mohammad Reza Nematzadeh said the program aimed at value creation and attraction of investment by local and foreign private investors. He invited potential investors to visit Iran so as to identify worthwhile and profitable projects, in downstream petrochemical industries that will be suitable for investment.
He told participants that NPC, apart from its role in the development of Iran's downstream petrochemical sector, has also planned for aggressive petrochemical expansion programs consisting of various projects in the upstream. Some of these projects, Nematzadeh said, were on the verge of completion, while others were under construction or planning stage. With its current expansion program, he said "Iran's petrochemical industry has set its sights on increasing its overall output capacity to 35 million tonnes per year." When these projects are onstream, petrochemical industry's contribution to Iran's GDP will surge to 2.1% in 2006. The figure was 1% in 1999. As the result of the build-up in capacity, Iran will account for 30% of the petrochemicals output of the Middle East by 2006. The contribution already stands at 11%.



According to NPC president, "The expansion under way, is backed by extensive availability of natural gas feedstock in the country. In addition to this, relative stability of gas price in the region, compared to prices of liquid feedstock, such as naphtha, coupled with developments in the gas industry and easy access to export markets, are conducive to the development of petrochemical industry in Iran."
Outlining the Iranian Petroleum Ministry's plans to develop and expand South Pars gas field, he said the field is being developed in stages. "Contracts for 10 phases have already been concluded for the field. Bids were floated for phases 11 and 12, whose investors are expected to be chosen soon. Phases 13 and 14 have been designated for GTL and LNG projects, while ITBs have recently been issued for phases 15 and 16," Nematzadeh added.
He said Iran's economic appeals including its abundant natural reserves, skilled human resources, growing export markets and significant local market growth have inspired leading foreign and international companies to invest in the NPC's development plans. In the past two years, Nematzadeh said, "NPC has finalized 6 joint ventures with foreign partners, while; several other joint investments initiatives are being studied or negotiated." He also said that NPC is also considering to produce clean fuels such as GTL, di-methyl ether (DME) and methanol for fuel cells, as part of its strategic program. In line with this strategy, several foreign companies have joined NPC to study a number of world-scale clean fuel projects.