Iran Petchem Investment Reaches $91.6 Billion

Iran Petchem Investment Reaches $91.6 Billion
(Sunday, October 11, 2026) 12:45

TEHRAN, Oct. 10 (NIPNA) — Investment in Iran's petrochemical industry reached $91.6 billion by the end of the 2025-26 Iranian calendar year, while the sector generated more than $22 billion in product sales, the head of the National Petrochemical Company (NPC) said on Saturday.

Omid Shakeri, deputy oil minister and NPC managing director, said the industry produced more than 75 million tonnes of petrochemical products in the year to March 2026, against annual installed capacity of more than 101 million tonnes.

Exports accounted for $12 billion of the sector's product sales, while domestic sales exceeded $10 billion, Shakeri said at a meeting with Acting Oil Minister Hamid Bovard and senior NPC executives.

Iran's Seventh Development Plan prioritises expanding the petrochemical value chain, with a focus on generating greater added value from hydrocarbon resources, Shakeri said.

Expansion and feedstock security

Shakeri said the petrochemical industry accounted for less than 10% of Iran's total gas consumption in 2025-26 while generating about $22 billion in added value, highlighting its contribution to the economy.

He said winter feedstock supply constraints underscored the need for petrochemical companies to invest in upstream oil and gas development to secure more reliable supplies. The industry is also pursuing projects to collect associated gas, he added.

Under the Seventh Development Plan, Iran aims to increase annual installed petrochemical capacity to about 111 million tonnes. Shakeri said around 15 million tonnes of capacity would be added over the plan's implementation period.

Employment and social investment

The industry directly employed 148,000 people in 2024 and supported a further 1.215 million indirect jobs, Shakeri said, citing figures that counted one link in the value chain.

Petrochemical companies spent nearly 2 trillion rials on social responsibility programmes in 2024, he said. Under a presidential directive, the industry's social responsibility funding in the current Iranian calendar year is to be allocated to expanding electronic education in schools.

Damaged capacity returning to production

Shakeri said the petrochemical industry had managed crisis conditions during the 12-day and 40-day wars, adding that reconstruction of damaged facilities was progressing.

About 60% of the production capacity lost because of damage had returned to operation, he said.

The recovery of damaged facilities, alongside planned capacity additions and upstream investment, remains important to maintaining production, securing feedstock and supporting export earnings, according to the NPC chief.

 


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