Iran Targets Sustainable Petchem Growth to Deepen Value Chain

Iran Targets Sustainable Petchem Growth to Deepen Value Chain
(Saturday, February 14, 2026) 10:19

TEHRAN, Feb. 11 (NIPNA) – Iran’s petrochemical industry has reached a nominal production capacity of more than 100 million tonnes per year, reinforcing its role as a key pillar of the country’s non-oil economy.


The sector, long positioned as a driver of value-added production, regional development and exports, is entering a new phase marked by efforts to balance expansion with efficiency gains, project completion and supply chain integration, according to the report.

79 complexes exceed 100 mln tonnes capacity

Iran’s installed petrochemical capacity has surpassed 100 million tonnes annually with the commissioning of 79 production complexes. Three utility complexes are also operational, providing supporting services to manufacturing units.

The southern hub of Asaluyeh remains the country’s largest petrochemical center, hosting 28 complexes with a combined capacity of 48.4 million tonnes per year. The concentration reflects direct access to feedstock from the South Pars gas field and sustained investment in the Pars Special Economic Energy Zone.

The Mahshahr region ranks second, with 21 complexes and annual capacity of 25.8 million tonnes. An additional 30 complexes across other provinces account for 25.6 million tonnes, indicating gradual geographic diversification aimed at boosting employment and regional industrialization.

New development zones

Authorities have designated five emerging petrochemical zones to support future growth. The Makran coastal region, spanning roughly 1,200 hectares, has received nine project permits, with five developments currently underway.

The Parsian energy-intensive zone, covering 1,000 hectares, has secured 12 permits and two active projects. Other targeted areas include Jask, Qeshm, and a second development phase in Mahshahr.

Completed projects

Several projects have been finalized under the current administration, including new polystyrene, polypropylene and methanol units, an NGL facility in Dehloran, and a 183-megawatt power plant in Makran. Some facilities have already entered formal operation.

Expansion plans

Alongside completed projects, dozens of developments remain in progress. The report said 61 projects with combined capacity of 32.1 million tonnes and investment of $24.3 billion are included in Iran’s Seventh Development Plan. A further 46 projects, representing 51.3 million tonnes of additional capacity and requiring an estimated $44 billion, have been outlined for the Eighth Plan.

Industry observers say the challenge for Iran’s petrochemical sector will be ensuring that capacity growth is matched by feedstock security, market access and downstream integration to maximize economic returns.

 


Email is required
Characters left: 500
Comment is required