TEHRAN- Based on formulated strategic plans, Iran’s petrochemical industry will see a 37% leap in production capacity by the Iranian year 1412 (2033–2034) through the implementation of 66 new projects and the completion of 45 semi-finished projects.

Accordingly, the National Petrochemical Company of Iran (NPC) has forecast the key estimates of this vision as follows:

· Year 1403 (2024–2025): Production capacity of 96.6 million tons and sales value of $12.7 billion. This figure reached 100 million tons of production in the year 1404 (2025–2026).

· Year 1407 (2028–2029): Production capacity of 131.5 million tons and export value of $26 billion.

· Year 1412 (2033–2034): Achieving a capacity of 182.7 million tons and a production value of $46.4 billion.

To realize these goals, approximately $246.1 billion in new investment is required—a path that will solidify Iran's petrochemical industry as the undisputed top regional petrochemical power.

Iran’s petrochemical industry has experienced one of its most brilliant periods under the 14th government, achieving $29.1 billion in net sales, extensive product exports, and raising nominal production capacity to 100 million tons.

The industry has set unprecedented records in net sales, exports, and production capacity expansion, cementing its path to sustainable growth. 

From smart pricing governance to an energy technology revolution and the launch of major national projects, the industry’s track record shows that by the Iranian year 1412 (2033-34), Iran will become the region’s undisputed petrochemical power with 182 million tons of various petrochemical products.

Undoubtedly, petrochemicals are among the most important and export-oriented industries for any country, and this advantage doubles when a nation uses domestic resources to supply feedstock—meaning low-cost local resources are transformed into valuable export products relying on domestic technology, engineering, and production capability.

Iran possesses an extensive petrochemical value chain, with a real operating capacity of 100 million tons, providing significant foreign exchange earnings. However, in the first months of the 14th government, these production units faced serious fuel and feedstock supply challenges. By 2025, necessary measures largely resolved these issues, and the National Petrochemical Company removed many obstacles.

To establish sustainable governance and improve efficiency, the National Petrochemical Company has steered private sector engagement and product pricing dispute resolution toward legal and economically rational frameworks.

In 2025, with government approval and issuance, the National Petrochemical Company adopted a new approach to pricing petrochemical products, aiming to create an effective governance framework. 

This effort seeks to establish a transparent, predictable environment for constructive interaction among producers, consumers, and regulators, while resolving potential disputes through specialized mechanisms.

One of the toughest winters for Iran’s petrochemical industry was 2024, when fuel and feedstock shortages forced some units to suspend production for three months, causing tens to hundreds of millions of dollars in lost profit per company. 

However, with the government’s spring and summer 2025 approach to fuel supply management, production stoppages were minimized. 

By February 13, 2026 (24 Bahman 1404), gas restrictions were lifted, allowing companies to withdraw gas up to their capacity limits.

Hassan Abbaszadeh, the managing director of the National Petrochemical Company, noted fluctuations in gas withdrawal during mid-February: In October (Mehr), daily withdrawal was around 90 million cubic meters, at times dropping to 75, 60, or even 50 million, but now an increasing trend has begun, exceeding 100 million cubic meters, with companies preparing for full production return. According to available data, about 98% of petrochemical supply and production capacity has been restored, and exports have grown about 2% compared to last year despite all restrictions.

Since 2024, the National Petrochemical Company has implemented a plan to encourage household fuel consumption reduction. 

The result was lower household consumption in Mazandaran, Gilan, and Golestan provinces. 

Proceeds from savings funded social services such as wheelchairs for the disabled, school supplies, and standard home heating equipment. The campaign ran for a second consecutive year starting December 21, 2025 (30 Azar 1404).

Abbaszadeh stated that under signed agreements, several petrochemical companies will invest in areas like awareness campaigns, equipment replacement, and other energy efficiency measures in Gilan, Mazandaran, and Golestan provinces. 

These projects aim to reduce natural gas use in households, public facilities, greenhouses, and poultry farms to sustain petrochemical production. Emphasizing the role of public participation, he said without people’s involvement, any plan would be incomplete. 

The main incentive for the campaign’s second year is increased public engagement in the three northern provinces, with results to be announced via a prize draw in the coming weeks.

He explained that due to direct impact from gas imbalances, the petrochemical industry decided to purposefully address this area, selecting three northern provinces as pilots—regions with high gas consumption in households, public sectors, greenhouses, and poultry farms. 

This year’s savings target is double last year’s, estimating a reduction of about 2 million cubic meters per day over several months, equivalent to the feedstock for one major petrochemical plant.

Iran’s petrochemical industry has moved from mere production to value creation and technology in line with the Seventh Development Plan’s goals. 

Smart governance, export infrastructure development, localization of key technologies, and value chain completion have made this industry not only a brilliant achievement of the 14th government but also a model of sustainable management and knowledge-based exports for all of Iran’s industries.

Back in January, the managing director of National Petrochemical Company stated that the company has set a goal of increasing petrochemical production capacity by over 130 million tons under the Seventh National Development Plan.

Hassan Abbaszadeh said the overall policies of program are based on completing the industry’s value chain, which will be achieved by a quantifiable increase in the production capacity.

This is the first time that completing value chain has been focused in the country’s national development plan, and a quantitative goal has been set for it, he noted.

Abbaszadeh emphasized that development policies and plans should consider the production of final products and move towards value chain development. He said balanced development in the industry should be given priority, and to this end, completing the four main chains of, propylene, ethylene, and aromatics in the Seventh National Development Plan has been targeted, and annual plans of the NPC are also aligned with achieving these goals.

The NPC head said the most significant achievement of the petrochemical industry has been its growth in line with preventing raw material export.

"The petrochemical industry is the embodiment of the value chain completion in the oil industry," he stressed.

The official considered sustainable feedstock supply as a pillar of the Seventh National Development Plan for the petrochemical industry. He added that efforts are being made to provide stock simultaneously with capacity development.

To this end, various paths for feedstock supply are under consideration, and one of the most important programs to make up for stock shortages in the short term is the collection of flare gases, which, in addition to increasing feedstock, also has a significant positive impact on environment.

He stated that the main target areas for collecting flare gases are West Karoun, East Karoun, Dehloran, and Ilam, where most of the country's flares are located. He further mentioned that multiple projects are underway in the Isfahan region as well to utilize associated gases.

EF/MA