Petrochemicals; a pioneering industry in Iran’s non-oil economy
60 countries import Iran’s petchem products
Iran’s petrochemical industry has come a long way, producing over 72 million tons of petrochemical products annually, and has become a cornerstone of the country’s non-oil economy. With exports to over 60 countries globally, the industry rakes in over $15 billion in annual revenue, playing a crucial role in reducing the country’s reliance on crude oil. Companies like Persian Gulf Petrochemical Industries Company (PGPIC) and Marun Petrochemical Complex are major players in the production and export of these products, holding a special place in international markets.
Petrochem industry’s role in boosting national wealth
Iran’s petrochemical industry, as a cornerstone of the country’s economy, has a significant impact on increasing national wealth. According to reports from the Oil Ministry, this industry directly accounts for around 25% of the country’s non-oil exports. In 2022, Iran produced over 72 million tons of petrochemical products, including methanol, polyethylene, polypropylene, and various chemical fertilizers. This production volume has not only met domestic needs but also generated substantial revenue for the country. Moreover, the production of petrochemical products has reduced dependence on crude oil exports, enabling Iran to export a greater volume of high-value-added products to global markets.
This industry also plays a vital role in creating direct and indirect jobs in the country. According to statistics from the Labor Ministry, the petrochemical industry has created over 143,000 direct jobs. Many of these jobs have been created in southern regions of the country, such as Bushehr and Khuzestan provinces and have significantly contributed to the economic development of these areas. In this regard, major petrochemical companies like the PGPIC and Marun Petrochemical Complex have provided job opportunities for thousands of people by expanding their operations.
In addition to creating employment, Iran’s petrochemical industry also serves as an economic driver for downstream industries. For instance, by producing chemical and plastic products domestically, industries such as automotive, home appliances, and textiles can access the raw materials they need and reduce their reliance on imports. This directly contributes to increasing domestic production and reducing dependence on imports, ultimately leading to economic growth.
Economic propellant
In recent years, Iran’s petrochemical industry has emerged as a major economic propellant, playing a pivotal role in propelling the country’s economy forward. According to reports from the Iran Trade Promotion Organization, in 2022, Iran raked in over $15 billion in revenue from the export of petrochemical products. This revenue, largely generated from the export of chemical products, methanol, and polyethylene to various countries, has contributed significantly to increasing the country’s value-added output. This, in turn, has had a direct impact on reducing the country’s reliance on crude oil exports and boosting domestic production capacity.
Iran has solidified its position in global markets by producing over 72 million tons of petrochemical products annually. According to statistics from the Iranian Customs Administration, Iran’s petrochemical products are exported to over 60 countries, and these products are in high demand in global markets, particularly in Asia and Europe. Furthermore, these exports generate substantial value-added revenue for the country, as they involve the sale of products with more complex processing, which leaves a larger share of the revenue in the country rather than just selling crude oil.
In addition to boosting export revenues, the petrochemical industry also plays a crucial role in promoting job creation. The Ministry of Labor estimates that the industry has directly created over 300,000 jobs, primarily in technical and engineering fields, production and transportation, and supporting downstream petrochemical industries. The expansion of this industry, particularly in southern regions of the country such as Bushehr and Khuzestan provinces, has led to economic growth and improved living standards in these areas.
Knowledge-based companies's role in petrochemicals
Knowledge-based companies have leveraged cutting-edge technologies and optimized production processes to boost the performance of the petrochemical industry. According to statistics from the Ministry of Science, Research, and Technology, the number of knowledge-based companies operating in Iran’s petrochemical industry has been on the rise in recent years. These companies have particularly excelled in the production of catalysts, innovative technologies, and process optimization, which has helped reduce production costs and enhance the quality of petrochemical products. Examples of such companies include Pouyakimia and Behsan Petrochemical Engineering companies, which specialize in the production of catalysts and other chemical materials.
These companies have also introduced new technologies in petrochemical production, thereby increasing Iran’s competitiveness in global markets. According to reports from the Planning and Budget Organization, the export of technology-intensive products manufactured by Iranian knowledge-based companies reached over $200 million in 2022, which underscores the significant impact of these companies on the country’s economy.
Furthermore, collaborations between petrochemical companies and Iranian knowledge-based companies have led to a reduction in dependence on imported advanced technologies. For instance, in the production of catalysts and special raw materials, which previously relied heavily on imports, domestic production has increased significantly. This has not only helped reduce production costs but also enhanced the country’s self-sufficiency in the petrochemical industry.
Position of petrochemicals in exporting oil-derived products
Iran, as one of the largest exporters of petrochemical products in the region, has managed to carve out a significant share of global markets. According to statistics from the Iranian Customs Administration, in 2022, Iran’s petrochemical exports reached $15 billion, accounting for a substantial portion of the country’s non-oil exports. These revenues are generated from the export of products such as methanol, polyethylene, polypropylene, and chemical fertilizers to various countries around the world. In this regard, China, India, and Turkey are recognized as the primary destinations for Iran’s exports.
Iran has solidified its position among the world’s largest producers by producing over 70 million tons of petrochemical products. Persian Gulf Petrochemical Industries Company and Marun Petrochemical Complex are among the largest petrochemical companies in Iran, accounting for a significant share of the country’s production and successfully exporting high-quality products to global markets. These companies are particularly recognized as major global suppliers of methanol and polyethylene.
The export of petrochemical products not only contributes to increasing the country’s foreign exchange earnings but also drives economic growth in various regions. This industry has created employment opportunities and developed industrial infrastructure, particularly in the southern provinces of Bushehr and Khuzestan. Therefore, Iran’s petrochemical industry plays a crucial role not only in exports and revenue generation but also in the development of industrial regions and increasing domestic production.
Importance of petrochemicals in preventing sale of crude oil
Iran’s petrochemical industry plays a vital role in preventing the sale of crude oil and converting it into higher-value-added products. According to the Oil Ministry, in 2022, Iran produced approximately 3 million barrels of crude oil per day. A significant portion of this crude oil is not exported in its raw form, but is instead converted into petrochemical products within the country, thereby creating more value-added revenue. This process has taken on special importance in the face of sanctions, as Iran has been able to reduce its dependence on crude oil sales by producing and exporting petrochemical products.
By harnessing its petrochemical capacities, Iran has managed to generate a substantial portion of its foreign exchange earnings from petrochemical products over the past few decades. According to reports from the Iran Trade Promotion Organization, in 2022, Iran earned over $15 billion from petrochemical exports. This revenue has enabled Iran to enjoy a lower dependence on crude oil exports compared to many other countries with similar oil reserves.
Petrochemicals play a crucial role in converting crude oil into high-value-added petrochemical and chemical products. These industries are able to produce final products such as polyethylene, polypropylene, methanol, and ammonia from primary resources like natural gas and crude oil through complex chemical processes. These products are not only valuable in domestic industries but also in global markets, which in turn prevents the sale of crude oil.
Major petrochemical units
Iran is home to a number of large and advanced petrochemical units that play a significant role in meeting domestic needs and exporting petrochemical products. “Persian Gulf Petrochemical Industries Company” is the largest and most important petrochemical company in Iran, located in the province of Bushehr, and is involved in the production of various products, including methanol, polyethylene, and propylene. With an annual production capacity of over 10 million tons, this company plays a key role in supplying petrochemical products to both domestic and foreign markets. According to the annual reports of Persian Gulf Petrochemical Industries Company, the company was able to export over 6 million tons of petrochemical products to various countries in 2022.
Another major petrochemical unit in Iran is “Marun Petrochemical Complex”, located in Khuzestan Province, which is recognized as one of the largest producers of polypropylene and ammonia in the country. With an annual production capacity of over 4 million tons, this company is considered one of the leading companies in the Iranian petrochemical industry and the region. According to reports from the Iran Trade Promotion Organization, this company was able to secure a significant share of Iran’s petrochemical exports in 2022.
Other major petrochemical units in Iran include “Bandar Imam Petrochemical Company”, which is involved in the production of methanol, ammonia, and other chemical products. This company, with an annual production capacity of over 5 million tons, is also one of the largest petrochemical units in Iran. Bandar Imam Petrochemical Company plays a significant role in supplying petrochemical products to both domestic and international markets and contributes to the export of chemical products.
In light of the above, the “Iranian petrochemical industry” has not only become a leading industry in terms of production but also in terms of exports and value-added creation. With the continuation of the growth and development of this industry, Iran will be able to secure a larger share of global markets and take effective steps towards reducing its dependence on oil resources. Continued investment in domestic projects and cooperation with international companies can contribute significantly to the sustainability and growth of the Iranian petrochemical industry.
The story was first provided by the Persian language news agency ISNA.