NPC has begun to draw up the details of its fourth five-year development plan. The plan will be drawn up in the framework of the company's strategic program. The plan pivotal guidelines include:

Maximum utilization of the country's natural gas resources

Construction of new export-oriented production capacities

Construction of plants with higher value-added products

Expansion of Research and Development activities

Protection and preservation of the environment

NPC has launched since 1998, an aggressive investment program to develop Iran's petrochemical sector. The investment is expected not only to increase the national earnings but also to lead further development of downstream industries and creation of job opportunities.
Two special economic zones Petrochemical Special Economic Zone in Bandar Imam Khomeini and Pars Special Economic/Energy Zone in Assaluyeh, both on the northern coast of the Persian Gulf are poised to house a portfolio of mostly world-scale petrochemical projects such as ethylene, propylene and related polymers, methanol, aromatics, PTA/PET and ammonia/ urea. They have easy access to natural gas feedstock, power, and international waters. In 2003-04, NPC will bring onstream several of its projects, which are under construction at the Petrochemical Special Economic Zone including olefins No.6, engineering polymers, 3^rd aromatics, 3^rd methanol and first PTA/PET.



NPC has planned to focus on its core businesses, which include the production of olefins, poly-olefins, aromatics, methanol, MEG, polyesters, styrinics, acetic acid and fertilizers.
Ethylene, as the backbone of the petrochemical industry, forms the chief part of the NPC's investment program. Its ethylene production capacity will rise to 4.8m tonne/year by 2005 when the company's existing projects are completed. Existing production capacity for various polyethylene and polypropylene will build up to some 3.5 million tonnes per annum by 2005. Build-up in aromatics capacity will reach 2.5 million tonnes per year when the two world-scale aromatic No. 3 and No. 4 facilities come onstream by 2004-05. With the completion of two world-scale projects, by 2005 Iran's methanol capacity will rise to 3.4m tonne/year. Meanwhile, NPC will produce around 1 million tonne of glycols by then. The completion of two PET projects by 2005 will bring annual polyester capacity to 800,000 tonnes. Annual capacity for styrene will soar to 700,000 tonnes when Pars Petrochemical project becomes operational. Current urea output capacity will increase to 3.8 million tonnes per year with the completion of Assaluyeh Urea/Ammonia project and a joint venture facility in Kermanshah.



Iran Petrochemical Commercial Co. (IPCC), the NPC's commercial subsidiary, has posted an export earning of $567m for the six months ending 22 September 2003. The sales shows 18% increase compared to the corresponding period last year. The rise has been due to the expansion of the IPCC's market presence, employment of new agents and increasing bonded warehouse transactions, Sales volumes are up 0.3%.
IPCC has already concluded or is negotiating to conclude new sales contracts for products from new petrochemical facilities, including PTA complex, which NPC is building.



IPCC has employed its first agent for the African continent. The decision was made in the wake of IPCC's policy to have greater presence in Africa's growing petrochemicals market. To this end, NPC's commercial arm finalized an agreement with a Sudanese agent to market its polymer products.
IPCC is studying to employ more agents to target African markets for output from NPC's upcoming projects.



NPC's R and D center in Arak has developed a batch process for manufacturing different grades of polytetramethylene ether glycol (PTMEG) or poly THF and also for recovery of excess THF up to semi-commercial pilot plant scale.
Work on bench scale continuous process as well as major considerations for handling process effluent are under progress.
PTMEG is an important and major intermediate ingredient of SPANDEX fiber. It is also used in the manufacture of polyurethanes for adhesive, foams and elastomers. Its propriety technology is held closely by few large multinational companies.