TEHRAN- Iran exported petrochemical products valued at $4.684 billion during the first quarter of the current Iranian calendar year (March 21-June 21), the head of the Islamic Republic of Iran Customs Administration (IRICA) announced.

Foroud Asgari said that 11.133 million tons of petrochemicals was exported during the three-month period, showing 28.7 percent fall in terms of weight, and 24.5 percent drop in terms of value, year on year.

As stated by the head of the National Petrochemical Company (NPC), Iran’s annual export of the petrochemicals is anticipated to reach about 34.8 million tons in the current Iranian calendar year (ends on March 2026).

Hassan Abbaszadeh also said that the country’s nominal production capacity of petrochemicals is expected to hit 105 million tons in this year.

The official has previously emphasized the importance of institutionalizing unity and synergy across the sector to achieve sustainable development, noting that agile, dynamic organizations require efficient and skilled human resources to enhance productivity.

The deputy oil minister added that one of the key roles of development-oriented firms is to facilitate private sector investment in petrochemicals. He said the National Petrochemical Company stands ready to support investors in this regard.

He called on company managers to actively back the industry during the Year of "Investment for Production" by taking practical steps to address the challenges faced by petrochemical firms.

Highlighting the need to accelerate development projects through enhanced financing, Abbaszadeh said that collaboration with petrochemical holding companies could drive production growth this year.

He acknowledged last year's challenges in securing feedstock due to energy imbalances but expressed confidence that proper planning and measures could improve the sector’s performance in 2025.

Abbaszadeh also credited parliamentary and government support for motivating industry players to pursue expansion strategies and focus on completing the value chain as a key priority.

Production in the petrochemical sector increased in the last Iranian year (ended on March 2025) compared to the year before, despite energy imbalances and feedstock shortages, he said, noting that most petrochemical plants achieved their production targets.

The National Petrochemical Company’s chief underscored the need to attract new investments and boost production in line with this year’s national motto.

Abbaszadeh reiterated the company’s readiness to facilitate private investment and stressed the importance of management’s support for the industry in tackling structural challenges.

He said the completion and operation of development projects could be accelerated through improved financial flows, and added that despite last year’s feedstock-related difficulties, coordinated efforts this year could drive better results in the high-value petrochemical sector.

The official concluded that strong backing from the Iranian parliament and government has empowered the industry to move forward with determination, focusing on value chain completion as a strategic imperative.

In early June, the NPC head had said that under the country’s Seventh National Development Plan, Iran aims to increase its petrochemical production capacity to 131 million tons, adding that this expansion is being pursued across various value chains, with a focus on creating balance between downstream and upstream development.

He emphasized that the lack of such balance in recent years has led to feedstock supply issues for several complexes. “Stable feedstock supply is a central pillar of the Seventh Plan, and our goal is to develop production capacity and feedstock sources in parallel,” he added.

To address the shortfall, NPC plans to source feedstock from multiple channels, including the recovery of flare gas — a short-term strategy that also benefits the environment.

Abbaszadeh identified the key flare gas recovery zones as West Karoun, East Karoun, Dehloran, and Ilam, which together account for about 75 percent of Iran’s flared gas. Projects in these areas are underway, including NGL 3100, which is expected to be operational in the coming months.

The expansion of the Bidboland Persian Gulf Gas Refinery under the Persian Gulf Holding is also in progress. It aims to eliminate around 55 gas flares, with 14 slated to be extinguished this year. In addition, Phase 2 of the Hoveyzeh Persian Gulf Gas Refinery (NGL 3200) is being developed, and by the end of next year, roughly 80 percent of associated flare gas is expected to be recovered and redirected to the petrochemical sector.

Abbaszadeh reiterated that securing feedstock remains NPC’s top priority. “With coordinated efforts across various agencies and implementation of targeted programs, we aim to minimize idle capacity and elevate Iran’s petrochemical industry to a strategic position in line with our long-term development goals,” he said.

On July 18, Hossein Alimorad, director of planning and development at the National Petrochemical Company, said that Iran’s petrochemical industry remains committed to achieving its development goals for the current year, despite disruptions caused by a 12-day conflict triggered by Israeli airstrikes.

The official told Shana that the industry quickly activated emergency response protocols to mitigate the impact of the conflict and maintain operational stability.

“In the first nine hours of the war, we formulated a strategic response to ensure industry readiness,” Alimorad said. “Through more than 14 focused crisis committee sessions, we managed to resolve all operational challenges and even provided support to other government entities.”

Israel launched a series of military strikes on June 12 (corresponding to Khordad 23 on the Iranian calendar), targeting sites in Tehran and other cities, including nuclear facilities, in what Iranian officials described as a violation of international law and national sovereignty. The attacks resulted in casualties among scientists, military personnel, and civilians.

Alimorad stressed that NPC remains on course to meet its strategic objectives for 2025 (Iranian year 1404), with several key projects advancing as planned. “The company is fully committed to its roadmap and continues executing programs with discipline,” he said.

Despite the recent hostilities, officials say the petrochemical sector’s robust preparedness and adherence to defined contingency protocols allowed it to maintain momentum. The sector is a cornerstone of Iran’s non-oil economy and a major source of hard currency revenue amid ongoing international sanctions.

MA