History of Iran’s Petrochemical Industry
Over half a century ago, Iran's petrochemical industry began. In the
late 1950s, the Iranian Ministry of Economics established the country’s Chemical
Organization, leading to the construction of Iran's first petrochemical plant
in 1958 in Marvdasht, Fars province. This plant would later expand and evolve
into the Shiraz Petrochemical Complex, Iran’s first operational petrochemical
facility.
To further this industry, the National Petrochemical Company (NPC) was
founded in 1963 as a subsidiary of the National Iranian Oil Company (NIOC). NPC
became responsible for developing and overseeing petrochemical activities in
the country.
Development and Transformation of Iran's Petrochemical Industry
The trajectory of Iran's petrochemical industry can be divided into
several distinct phases:
Initial Growth and Expansion (1963–1979)
From 1963 until the Islamic Revolution in 1979, the industry expanded
under three major development plans. These programs focused on supplying
domestic needs for chemical fertilizers and basic petrochemicals. Key projects
included the construction of the Razi (Shahpour) petrochemical complex, the
Abadan and Pasargad complexes, and the development of Shiraz Petrochemical
Complex. By 1976, NPC’s annual production reached nearly 3 million tons of
petrochemical products.
Setback and Resurgence (1979–1989)
The outbreak of the Iran-Iraq war in 1980 resulted in a significant
decline in production, as many petrochemical plants, especially those in the
southern regions, were either damaged or halted. Despite this, the industry
managed to complete several projects, including the expansion of Shiraz
Petrochemical Complex. The post-war period saw a renewed focus on
reconstruction and development, culminating in the completion of key projects
such as the Bandar Imam petrochemical complex.
Growth and Stabilization (1989–2006)
Following the war, Iran's petrochemical industry entered a phase of
revitalization. Key goals during this time included rebuilding war-damaged
plants, boosting production capacity, and improving technology. The industry's
focus shifted toward increasing exports and reducing dependency on a
single-product economy. By the end of the second five-year development plan in
2006, Iran’s petrochemical production capacity had reached 14 million tons
annually.
Global Positioning and Expansion (2006–Present)
Iran's petrochemical industry experienced significant growth between
2006 and 2025. New plants were established, and existing facilities were
upgraded to increase production and add value through a more diverse product
range. This period saw the expansion of Iran’s petrochemical exports, which
increased from 2.3 million tons in 1996 to 29.4 million tons by 2023.
As of 2025, Iran’s petrochemical industry consists of 72 active
complexes, with an annual production capacity of 96.3 million tons. This growth
aligns with the country’s strategic plans to diversify its economy and enhance
its international presence.
Future Goals and Strategic Directions
The National Petrochemical Company has shifted its focus from being a
state-owned enterprise to a development-oriented organization. Key objectives
for the future include:
·
Sustainable and Balanced
Growth: Completing the petrochemical value chain through regional studies.
·
Investment and Expansion:
Fostering new investments and increasing the added value of hydrocarbon
resources.
·
Global Market Presence:
Enhancing the share of petrochemicals in the global market and improving the
industry’s contribution to Iran’s national economy.
·
Technological Advancement:
Promoting domestic innovation and increasing the role of knowledge-based
companies in advancing new technologies.
·
Market Development:
Expanding both domestic and international markets for diverse petrochemical
products.
Iran’s petrochemical industry has undergone a remarkable
transformation, growing from a nascent sector to a global player. This
development has not only contributed to the diversification of the Iranian
economy but also positioned the country as a major petrochemical producer in
the Middle East.