Petchem output hits 32m tons in five months; new projects launched
Iran produced 32 million tons of petrochemical products in the first five months of the Iranian year (began on March 20, 2025) despite “difficult conditions,” Hassan Abbaszadeh, head of the National Petrochemical Company, said on Wednesday.
Of that total, 13 million tons worth $5.5 billion were exported and 7 million tons worth $4 billion were sold on the domestic market, he told a press conference, SHANA reported.
Referring to the importance of port infrastructure in the petrochemical industry, Abbaszadeh cited the launch of new jetties, strengthening of transmission lines and the expansion of loading and unloading capacity as measures taken to develop the sector’s infrastructure."
According to the official addressing the press in May, the end of the previous year, which ended on March 20, 2025, the industry’s installed capacity had reached 75 million tons, with 78% of that operational.
“Last year, the industry produced 42 million tons of final petrochemical products, excluding inter-complex feedstock, worth $24 billion. Of that, 29 million tons valued at $13 billion were exported and 13 million tons worth about $11 billion were sold domestically,” he said on May 12.
Development projects
Abbaszadeh said 15 petrochemical projects, four feedstock supply projects, three utility service projects and four to five other schemes are scheduled to be commissioned this year. Six projects have already been launched and entered production.
The first phase of a flare gas recovery project in Khuzestan Province was inaugurated this year, returning 2.7 million cubic meters of gas per day to the feedstock network. In total, projects coming onstream in 2025 will add 9.8 million tons of production capacity with $6 billion of investment.
Feedstock challenge, solutions
He described feedstock supply as the industry’s biggest challenge, saying nearly all current capacity is in use but many units remain idle due to shortages.
The main solution, he said, is investment by petrochemical companies in upstream projects and the use of flare gas. Several recovery projects backed by Persian Gulf holding, Marun and other firms have made progress, with some already operational. Large-scale flare gas recovery projects aim to eliminate flaring in targeted regions by next year. In cases where company investment has been insufficient, direct links have been established between petrochemical producers and these projects to speed up financing.
Market expansion
Abbaszadeh said Africa is being studied as a new target market. Separate assessments have been carried out for each country to identify feedstocks, suppliers and substitution capacity for Iranian products.
The policy mirrors Iran’s successful expansion in the Indian market and aims to increase its share in non-state markets while diversifying its industrial customer base.
One key project is smart industry monitoring, carried out with the Vice Presidency for Science and Technology, to install smart devices and improve process control.