After the Islamic Revolution, Iran’s petrochemical sector accelerated its development and played an important and leading role in the country’s economic plan from 1979 to 2024.
Today, annual production capacity exceeds 96 million tonnes and revenue exceeds USD 23 billion, with the industry accounting for 30% of Iran’s non-oil exports. This report examines post-revolutionary growth in Iran’s petrochemical industry and post-revolutionary growth based on the first to seventh development plans and the performance of the 14th administration in this sector.
The Islamic Revolution of 1979
By the time of the Islamic Revolution in 1979, Iran’s petrochemical industry was about 15 years old. Its main focus was to meet domestic demand for chemical fertilizers and basic petrochemical materials.
Important complexes such as the petrochemical complexes of Razi (Shahpur), Abadan, Pazargad, Carbon Ahvaz, Kharg, Farabi (Iran-Nippon), Shiraz and Bandar Imam have already been established.
By 1977, the industry’s production capacity had reached approximately 3 million tons of intermediate and final products, with total investment in the National Petrochemical Company (NPC) reaching approximately 110 billion RI.
The Sacred Defence Era (1980-88)
From the Revolution until mid-1988, the NPC activities focused primarily on supporting war efforts, along with the design and preparation of the Arak and Isfahan complex.
The only major project completed during this period was the expansion of Shiraz’s petrochemical complex. After the acceptance of UN Resolution 598 in 1988, the NPC began rebuilding and modernizing the facilities. During this period, investment reached 420 billion RI, allowing for the completion of Shiraz’s petrochemical complexes (ammonia and urea 2) and chloralkaline projects, and the Shiraz methanol, Arachite Chemical Complexes and Radidiamonium Phosphate Project. It’s started.
By 1988, the Shiraz Petrochemical Complex had reached its highest production level after the revolution, with total production reaching 880,000 tonnes.
Socioeconomic and Cultural Development Plan for the First Five Years (1989-94)
The first development plan involved efforts to rebuild the war-damaged complex, completing several important projects, including the Isfahan, Arak (Phase 1) and the Bandar Imam complex.
The plan aims to meet the needs of downstream industries, reduce imports, diversify the economy and promote domestic technology. Ten new projects have begun, and NPC production capacity has increased from 5.3 million tonnes in 1989 to 10.3 million tonnes in 1994, totaling 708.5 billion ri.
Second Five Years of Socioeconomic and Cultural Development Plan (1995-99)
The second five-year plan focused on improving profitability, expanding exports, privatization and diversification. By 1999, annual production had reached 11 million tons, with investments totaling 8.123 billion RI.
Domestic sales increased to 3.8 million tonnes worth 4.3 billion rial, while exports reached 2.9 million tonnes, $580 million. The share of the non-oil export petrochemical sector has increased to 17.2%, while the share of industrial exports has reached 30.7%.
The 3rd Year Five Year Socioeconomic and Cultural Development Plan (2000-2004)
The third plan highlighted the optimization of existing capabilities, modernization of old units, production of high-value products, and exports of expansion.
By 2004, annual production capacity had reached 18 million tons, with exports totaling 5.2 million tons worth $1.7 billion, and domestic sales amounted to 4.8 million tons, a total of 12.6 trillion rial.
The 4th Five Year Socioeconomic and Cultural Development Plan (2005-10)
This period focuses on using gas-based hydrocarbons to expand the value chain, increase production capacity and attract private investment. 40 projects with a total capacity of 34.3 million tons have been completed.
Five Years of Socioeconomic and Cultural Development Plan (2011-16)
The petrochemical industry continues to grow rapidly, adding 10.5 million tonnes of production capacity through 26 projects carried out primarily by the private sector.
6th Five Year Socioeconomic and Cultural Development Plan (2017-23)
By late March 2024, 25 petrochemical projects with a total capacity of 33.6 million tons had begun operation, bringing the industry’s total capacity to 96.3 million tons.
The sector consumed 1.1 million barrels of crude oil every day, produced 74.3 million tonnes of product, generating $23.3 billion in revenue from domestic and export sales.
Five Year Socioeconomic and Cultural Development Plan for 7th Grade (2024-28)
The seventh plan, which begins in 2024, focuses on reducing value chain completion and raw material sales to create higher value added.
There are 67 projects planned with a total capacity of 35.2 million tonnes and an investment of $25 billion, with $12 billion already invested. Between March 2023 and December 2023, 5.9 million tons of petrochemicals were produced, up 3.5% from the previous year, but exports reached 2391 million tons worth $10.34 billion, or 7% increased with the amount.
Petrochemical industry under the 14th administration
From August to December 2024, the industry produced 24.2 million tonnes of products. Domestic sales reached 5.3 million tonnes worth $4.7 billion, while exports totaled 13.4 million tonnes.
Net sales during this period amounted to $10.5 billion, 18.7 million tonnes. Foreign currency profits from petrochemical exports reached $5.8 billion, and $3.3 billion was deposited into the NIMA system after covering important needs.
Key initiatives under the 14th administration include the formation of the 7th development plan and petrochemical raw materials working group, launching energy saving projects, presenting AI strategies, and conducting feasibility studies for various projects It will be available. Efforts to streamline licensing and secure funding for stalled projects are also prioritized.
Edited by Sm Ahmadi al-e-hashem