In an address to the inaugural session of Iran's Petrochemical Forum (IPF 2000) , Bijan Namdar Zanganeh, Iran's Petroleum Minister, called for reinforcing regional cooperation in the petrochemical industry.
   This theme was shared by Mohammad Reza Nematzadeh, Deputy Petroleum Minister and President of NPC, M. H. Adeli, Iran's Deputy Foreign Minister for Economic Affairs and Mohammad H. Al-Mady, Vice Chairman & Managing Director of Saudi Basic Industries Corporation (SABIC).

   In his speech, Zanganeh sought to shed light on the fact that excessive investment could bring losses to the industry. He warned, "despite all the gains that the countries in the region have had in this respect, over investment may push the region's petrochemical industry to the brink of crises like over-capacity and futile commercial rivalry which, at times, prove to be both damaging and wasteful".

Bijan Namdar Zanganeh, Iran's Petroleum Minister

   He proposed that further and rapid expansion of regional cooperation "appears to be a useful remedy to guard against the potential negative consequences of these phenomena". He suggested that regional cooperation could encompass issues like joint investment and marketing, formation of regional consultancy and contracting companies, joint production of equipment and machinery and customs exemptions for swapping petrochemicals.

   Zanganeh announced that in the two previous development plans the defined targets for Iran's petrochemical industry were realized. "As the result of these plans, the share of petrochemicals in the country's GNP and non-oil exports increased to 0.75% and 19% respectively", he pointed out.
   He went on to note that the third development plan (2000-2005) has set ambitious, yet realizable goals for the petrochemicals sector. Moreover, he underscored that, "considerable legal facilities have also been earmarked for this sector". Zanganeh disclosed that in the course of the third plan, an investment of around $7.5 billion would be made in the petrochemical industry.
   To realize this target, "the third plan has openly authorized the Petroleum Ministry to enter into joint investment schemes for constructing petroleum-related projects including refineries and petrochemical facilities".

   He said the strategy for providing feedstock to the NPC's development projects "is based upon maximum use of NGL, condensates and, more importantly, economic extraction of C2+ cuts from gas resources especially those of the South Pars Gas fields".
   Zanganeh stressed that "in the future, South Pars region will become the hub of Iran's petrochemical industry".

   Investment advantages in Petrochemical Special Economic Zone and ParsEE (Assaluyeh) formed another part of his address. He pointed out that "Investment in oil, gas and petrochemical industries has started at both of these Zones".