Introduction to NPCs Office for Downstream Petrochemical Industries

The NPC's Office for Development of Downstream Petrochemical Industries


Since its establishment until the 1979 Islamic Revolution, Iran’s petrochemical industry yielded a production of less than 3 million tons, but today the production capacity has been surged more than 20-fold to 60 million tons. The current goal of Iran’s petrochemical industry is to become “the leading regional force in terms of petrochemical product value.”Constant efforts and cooperation between the private and government sectors will greatly contribute to realizing this goal.


The implementation of new petrochemical projects has increased the volume and variety of petrochemical products, preparing the grounds for developing downstream industries that use petrochemical products and complete the value chain of the petrochemical industry. The increase in activities of the private sector in downstream areas related to oil, gas and petrochemicals along with better cooperation between the downstream and upstream industries create higher added values and employment, boost resistance economy and pave the ground for the competitive presence of Iranian products in global markets. Senior Iranian officials in the government, Parliament, Petroleum Ministry and the National Petrochemical Company have, therefore, emphasized the significance of supporting investment in downstream industries as well as preventing the sale of raw materials.In line with these policies, the NPC Office for Development of Downstream Petrochemical Industries was established in 2002 with the aim of supporting and channeling investment in the petrochemical sector.


Downstream Petrochemical Industries


Downstream petrochemical industries use petrochemical or refinery products as raw material.They can be divided into two categories

•    Consumer products such as telephone, car seat cover, etc

•    Intermediate materials: Raw materials used for manufacturing consumer products. Intermediate materials are important for the completion and improvement of the petrochemical product chain and manufacturing consumer products.

Subsidiary Petrochemical Downstream Industries

1. Plastics
2. Rubber
3. Paint and resin
4. Fertilizers and toxins
5. Chemicals and solvents
6. Fibers and textile
7. Synthetic medicines
8. Cosmetics
9. Composite
10. Detergents

Goals

1.    Devising a comprehensive development plan for downstream petrochemical industries
2.    Improving business atmosphere
3.    Supporting investment in downstream industries
4.    Troubleshooting downstream industries and planning to make maximum use of the existing potentials
5.    Attracting and channeling investments by presenting technical, economic and market information
6.    Coordination with relevant institutions and gaining their support for downstream petrochemical industries
7.    Identifying and introducing the job opportunities
8.    Carrying out market development and introducing new markets
9.    Bringing about balanced development through attending to less-developed areas
10.    Facilitating the investment process by improving coordination between relevant organizations

Activities

1.    Constant monitoring of the problems faced by the downstream petrochemical industries, and presenting solutions and preventive measures
2.    Helping to strengthen producer associations and integrating them into a network
3.    Identifying market potentials for the downstream petrochemical industry products
4.    Identifying and introducing business service providers
5.    Supporting research activities related to development of downstream industries (market, technology, establishment of foundations,...)
6.    Conducting preliminary studies and identifying effective regional potentials in downstream industries
7.    Lead investors to establish downstream industries according to spatial planning results
8.    Identifying new business opportunities in downstream petrochemical industries
9.    Providing a petrochemical material database to determine the status of each petrochemical product in terms of production, consumption and use
10.    Regulating markets for sustainable supply of raw materials for downstream industries and export of petrochemical products
11.    Helping to develop and strengthen service provider companies in (construction , management , research , … )
12.    Online announcement of the latest developments related to downstream industries on the Office website
13.    Active participation in market control management and implementing price controls for petrochemical products
14.    Holding periodic meetings and interacting with associations in order to activate dormant capacities
15.    Collaboration with Iran’s Small Industries and Industrial Parks Organization to improve and develop the capacity of downstream industries in industrial parks
16.    Interacting with banks, funds and credit institutions to finance downstream petrochemical industries
17.    Carrying out promotional activities to boost investment in downstream petrochemical industries
18.    Interacting with relevant organizations to facilitate investment

Missions

1.    Developing strategic and operational planning, and formulating  national strategic policies of downstream petrochemical industries with the cooperation and coordination of stakeholders
2.    Proposing bills and supporting laws,and legal provisions and regulations in order to develop and support downstream petrochemical industries
3.    Collaborating with relevant institutions and organizations in order to mobilize support for downstream petrochemical industries through creating and enhancing a national will for (development, production and productivity, per capita consumption increase, environment preservation, recycling, etc…)
4.    Identifying and strengthening the complementary foundations of downstream petrochemical industries such as business service providers with the aim of completing the petrochemical industry value chain
5.    Planning and providing support for research as well as industrialization of new and useful ideas in downstream petrochemical industries with the help of universities and research institutions as well as the Vice President’s Office for Science and Technology
6.    Completing the petrochemical products value chain through planning and policy - making for the balanced development of downstream petrochemical industries simultaneously in line with basic and midstream industries
7.    Interacting with all entry spots to channel policies, resources , and facilities towards the development of downstream petrochemical industries
8.    Development of downstream petrochemical exports
9.    Establishment and membership in work groups authorized to make inter-ministerial decisions  
10.    Developing the different forms of databases required by stakeholders
11.    Helping to identify and strengthen service providers in areas of technology, finance, etc…
12.    Regulating the market of petrochemical products for sustainable provision of raw material for downstream petrochemical industries
13.    Reducing government intervention through strengthening associations active in the development of downstream petrochemical industries
14.    Utilizing and maximizing the potentials of universities and research institutions in order to improve downstream petrochemical industries


Investment

1.    Encouraging domestic and foreign investors to invest in downstream petrochemical industries through measures such as activation of regional developmental groups, launching teaser campaigns, publishing analytical articles and reports in the press, contributing to investment, and active participation in national and international expos and conferences
2.    Monitoring national and international downstream petrochemical industries and announcing new investment opportunities
3.    Supporting and guiding the investors based on their executive background, financial capacity, technical capability and knowledge of petrochemical industry
4.    Offering support services to investors of downstream petrochemical industries through identification and introduction of downstream institutions, creation of investor databases, formation of professional advisor committees, conducting strategic studies, etc…

Studies

1.    Supervising feasibility studies (FS) of downstream petrochemical industries
2.    Providing and supervising preliminary feasibility studies (PFS) in downstream petrochemical industries
3.    Providing 36 feasibility studies (FS) related to downstream petrochemical industries
4.    Providing 160 preliminary feasibility studies (PFS) in downstream petrochemical industries
5.    Studying and assessing domestic and export markets in the form of professional market research projects in order to develop products of downstream petrochemical industries
6.    Identifying harmful work regulations in downstream petrochemical industries and offering reform proposals in the form of bills to the parliament in cooperation with the Small Industries and Industrial Parks Organization
7.    Creating an investment idea database in downstream industries

Benefits of Downstream Petrochemical Industries

1.    Preventing the sale of raw materials, contributing to the increase of non-oil exports and realization of resistance economy
2.    Nation-wide operation capacity and preventing population and industrial concentration
3.    Generating high added value
4.    Helping the fair distribution of wealth in the country
5.    Helping to increase national security, especially in border areas
6.    Driving national economy
7.    Requiring less financial resources for investment compared with upstream and midstream industries
8.    High rate of return on investment compared with basic and midstream petrochemical industries
9.    The capacity to be developed outside the country, especially in regional states, and pave the way for exporting the rich culture of the Islamic Revolution
10.    Preparing ground for attracting foreign investment especially that of Iranian expatriates as well as the wandering capital inside the country
11.    Developing and strengthening cooperatives in the country
12.    Capacity to create more jobs with lower cost compared with basic and midstream petrochemical industries
13.    The existence of cheap labor and unemployed, talented graduates in areas related to the country’s downstream petrochemical industries
14.    The possibility of using home businesses and engaging in production with no need for setting up factories
15.    Requiring simple and accessible technical knowledge compared with upstream petrochemical industries and a shorter time for erecting and operating companies
16.    Limited volume of required utilities such as (water, electricity, steam, etc…)
17.    The capacity to deal with sanctions through uncontrolled exports,without the need to deal with bank credit lines
18.    Developing the industries relying on petrochemicals such as the car industry, construction industry, etc…
19.    Existence of proper regional market
20.    Diversity of downstream products such as plastic, rubber, paint and resin, glue, composite, etc.
21.    Enjoying relative advantage in accessing some of the raw materials required in the country
22.    Limited emission of air pollutants compared with other manufacturing industries