Seyed Jafar Hashemi, CEO of Parsian Oil and Gas Holding, speaking at the 33rd meeting of petrochemical company executives, said the industry accounts for around 5% of Iran’s GDP – equivalent to about 10.4 quadrillion rials – placing the country second only to China in terms of petrochemical share in the national economy.
Citing Central Bank data, Hashemi noted that petrochemicals represent 17% of Iran’s industrial and mining sector output. He compared Iran’s 5% GDP share to China’s 6%, Germany’s 3.4%, and Brazil’s 4.4%, underscoring the sector’s strategic role.
Iran consumed 277 billion cubic meters of gas in 2023, making it the world’s fourth-largest consumer, Hashemi said. Industry accounted for about 30% of total demand, while power generation used another 30%. In contrast, Iran produced 694 bcm of gas in the past Iranian year (ended March 2025), a 5.4% increase, though seasonal shortages forced some petrochemical plants to curb operations.
Hashemi stressed that while the steel industry consumes about 40 mcm/d of gas compared to just 9 mcm/d in petrochemicals, petrochemical exports reached 29.6 million tons in 2024, far outstripping steel’s 7.6 million tons and cement’s 3.3 million tons. “The petrochemical industry delivers at least two and a half times more value-added than steel,” he said.
Winter shortages, however, continue to cut production capacity from 68 mcm/d to as low as 35 mcm/d, causing financial losses and missed export opportunities. Hashemi urged the Petroleum Ministry and National Iranian Oil Company to streamline upstream investment processes to tackle the supply gap.
“Unfortunately, we have seen more talk than action in recent years,” he said. “If upstream projects are accelerated, much of the gas imbalance and its economic impact can be resolved.”