The conflict damaged parts of several petrochemical complexes as well
as infrastructure supplying feedstock, electricity and steam. The disruptions
posed a broader risk because petrochemical products are key inputs for
industries ranging from food packaging and detergents to medical equipment,
automobiles and household appliances.
Iran’s response combined emergency production management with measures
to protect domestic supplies, restrict exports of products in short supply,
facilitate targeted imports and accelerate repairs at damaged facilities.
Preparing before the crisis
The industry’s response began before the conflict, with contingency
planning based partly on experience from the previous 12-day war and
requirements related to non-military defense and business continuity.
The National Petrochemical Company established an emergency management
task force to identify critical domestic requirements and prepare plans for
securing and storing raw materials needed by priority downstream industries.
The objective was to ensure that temporary shutdowns at individual
complexes would not translate into prolonged shortages for manufacturers
further down the supply chain.
Production continues at unaffected facilities
Following the outbreak of the war, emergency coordination mechanisms
were activated among the National Petrochemical Company, individual producers
and other relevant agencies.
At facilities affected by attacks, managing operational risks while
preventing further disruptions became an immediate priority. At the same time,
unaffected units continued operating where possible, while efforts were made to
maintain export infrastructure and logistics through terminals in the Pars and
Mahshahr regions.
The focus extended beyond restoring damaged plants. Maintaining
supplies of petrochemical feedstock to domestic manufacturers became a central
part of the response.
Domestic demand takes priority
The government adopted measures designed to prevent wartime volatility
in global markets from being transmitted directly to Iran’s domestic
petrochemical market.
Base prices for petrochemical products were maintained using pre-war
international price benchmarks, while purchasing quotas and distribution were
monitored in coordination with the Industry, Mining and Trade Ministry.
Export policy was also adjusted. Products considered necessary for the
domestic market were removed from the list of goods eligible for export, while
products produced in excess of domestic requirements remained available for
overseas sales.
The approach was therefore not a blanket suspension of exports.
Instead, domestic demand was assessed first, with surplus production directed
toward export markets, allowing the industry to continue generating
foreign-exchange revenue while protecting local manufacturers.
Targeted imports fill shortages
Imports provided a second line of defense against supply gaps.
Petrochemical producers, downstream manufacturers and traders were
able to participate in importing products facing domestic shortages, while the
National Petrochemical Company worked to facilitate imports by petrochemical
producers.
The resulting supply strategy relied on three elements: maintaining
domestic production, bringing in targeted imports where shortages emerged and
restricting exports of products required by domestic consumers.
Reconstruction begins alongside market management
Damage assessments and reconstruction planning began as the conflict
moved toward a cease-fire under what officials referred to as the “Islamabad
Agreement.”
The National Petrochemical Company established a reconstruction task
force supported by specialized working groups. Restoring damaged capacity and
securing raw materials for downstream industries were among its priorities.
Rehabilitation, reconstruction and recommissioning plans were
subsequently coordinated with the Industry, Mining and Trade Ministry, the
Central Bank and the Association of Petrochemical Industry Employers.
According to the National Petrochemical Company, reconstruction plans
were prepared on a quarterly basis and reviewed weekly, allowing production and
supply schedules to be adjusted as individual units returned to operation.
Power and steam critical to recovery
Restoring utilities was as important as repairing production units.
Electricity and steam supplies were coordinated using available
resources from the oil industry, connected power plants and existing steam
infrastructure, while the Energy Exchange was also used as part of the recovery
effort.
The commissioning of independent steam units and access to grid
electricity helped return about half of the production capacity in the
Assaluyeh and Mahshahr hubs to operation, according to the company.
Restoring the right capacity first
The reconstruction strategy was not based solely on restoring nominal
production capacity. Priority was given to facilities whose output was
considered more important for downstream manufacturers.
Petrochemical complexes in Mahshahr and Assaluyeh were progressively
brought back into operation, with the immediate objective of increasing
domestic availability rather than simply maximizing overall plant utilization.
The National Petrochemical Company also adjusted production planning
according to market requirements, including directing individual complexes to
manufacture specific product grades for defined periods when necessary.
A multilayered response
The wartime experience demonstrated that resilience in the
petrochemical sector depends on more than the ability of individual plants to
remain operational.
Contingency planning before the conflict, emergency coordination
during attacks and simultaneous management of production, inventories, domestic
distribution, trade and reconstruction created a multilayered response designed
to prevent damage at individual facilities from becoming a nationwide
supply-chain disruption.
Maintaining unaffected production, securing feedstock for downstream
industries, stabilizing domestic pricing, restricting exports of scarce
products, facilitating targeted imports and accelerating reconstruction formed
an interconnected set of measures aimed at keeping the wider industrial chain
functioning.
As damaged facilities return to service, the industry’s focus is
shifting from emergency supply management toward recovery of lost capacity. The
National Petrochemical Company is now balancing three objectives: maintaining
production, ensuring reliable domestic supplies and restoring facilities
affected during the conflict.
The experience has also underscored the strategic role of
petrochemicals beyond their contribution to exports and foreign-exchange
earnings. Their products feed thousands of manufacturing operations, making the
sector’s ability to withstand disruptions a critical component of the wider
economy’s resilience.