In the aftermath of the Islamic Revolution, the Iranian petrochemical sector accelerated its development, playing a leadership role in the nation’s economic plans from 1979 to 2024.
Today, with an annual production capacity of more than 96 million tons and revenues exceeding 23 billion dollars, the industry represents 30 % of Iran’s non -oil exports. This report examines the growth of the Iranian petrochemical industry after the revolution, based on the seventh development plans in the country and the fourteenth administration in this sector.
Islamic Revolution in 1979
By the time of the Islamic Revolution in 1979, the Iranian petrochemical industry was about 15 years old. Its primary concentration was to meet the local demand on chemical fertilizers and basic petrochemical materials.
The main complexes such as Razi (Shahbour), Abadan, Bazargad, carbon Ahfaz, Kharga, Farabi (Iran Nippon), and parts of Shiraz complexes and Brander Imam Petrochemical Imam have already been established.
By 1977, the production capacity of the industry amounted to about 3 million tons of medium and final products, with total investments in the National Petrochemical Company (NPC), which amounts to about 110 billion riyals.
The era of sacred defense (1980-88)
From the revolution until mid -1988, NPC activities were largely focused on supporting the war effort, as well as the design and preparation of ARAK and ISFAHAN complexes.
The only main project that was completed during this period was the expansion of the Chiraz Petrochemical Complex. After accepting UN Resolution 598 in 1988, NPC began to rebuild and update its facilities. During this period, the investments reached 420 billion riyals, allowing the completion of the Chiraz Petrochemical Complex (ammonia and urea 2) and the chlorine project, with the start of the Shiraz Methanol projects, and the Araki Petrochemical Phosphate Complex.
By 1988, the SHIAZ Petrochemical Complex reached the highest levels of post -revolution production, with a total production of 880,000 tons, including 270,000 tons of sulfur exports of $ 26 million and local sales of 430,000 tons of 5 billion Rials .
Plan of Social, Economic and Cultural Development for a period of five years (1989-1994)
During the first development plan, efforts were made to rebuild the war damaged complexes, and many major projects were completed, including ISFAHAN, ARAK complexes (Phase 1) and Bandar IMam.
The plan aims to meet the needs of the estuary industry, reduce imports, diversify the economy, and promote local technology. Ten new projects were launched, which increased NPC production capacity of 5.3 million tons in 1989 to 10.3 million tons in 1994, with investments of 7.085 billion riyals.
Plan of Social, Economic and Cultural Development for a period of five years (1995-1999)
The second plan for five years focused on increasing profitability, expanding exports, privatizing and diversifying products. By 1999, annual production amounted to 11 million tons, with investments totaling 8123 billion riyals.
Local sales grew to 3.8 million tons worth 4300 billion riyals, while exports amounted to 2.9 million tons, at a value of 580 million dollars. The share of the petrochemical sector of non -oil exports increased to 17.2 %, and its share of industrial exports reached 30.7 %.
The social, economic and cultural development plan for a period of five years (2000-2004)
The third plan emphasized improving current capabilities, modernizing old units, producing high -value products, and expanding exports.
By 2004, the annual production capacity amounted to 18 million tons, with total exports reached 5.2 million tons, worth 1.7 billion dollars, and local sales of 4.8 million tons, at a value of 12.6 trillion riyals.
Plan of Social and Cultural Development for a period of five years (2005-10)
This period focused on the use of gas -based hydrocarbons to expand the value chain, increase production capacity, and attract private investments. Forty projects have been completed with a total capacity of 34.3 million tons.
Plan of Social, Economic and Cultural Development for a period of five years (2011-16)
The petrochemical industry continued its rapid growth, adding 10.5 million tons of productive capabilities through 26 projects, most of which are implemented by the private sector.
Plan of Social, Economic and Cultural Development for a period of five years (2017-23)
By late March 2024, 25 petrochemical projects with a total capacity of 33.6 million tons operating, up to the total industry capacity of 96.3 million tons.
The sector consumed 1.1 million barrels of crude oil per day and produced 74.3 million tons of products, achieving $ 23.3 billion in local sales and export.
The social, economic and cultural development plan for a period of five years (2024-28)
The seventh plan, which begins in 2024, focuses on completing the value chain and reducing the sales of raw materials to create a higher added value.
Sixty -seven projects were planned with a total capacity of 35.2 million tons and $ 25 billion in investments, with $ 12 billion in investment. From March 2023 to December 2023, 59.02 million tons of petrochemical products were produced, an increase of 3.5 % on an annual basis, while exports reached 23.91 million tons of $ 10.34 billion, an increase of 7 % depending on size.
The petrochemical industry under the fourteenth administration
From August to December 2024, the industry produced 24.2 million tons of products. Local sales amounted to 5.3 million tons of $ 4.7 billion, while total exports amounted to 13.4 million tons, worth $ 5.8 billion.
The total net sales during this period amounted to 18.7 million tons, at a value of $ 10.5 billion. Foreign currency profits from petrochemical exports amounted to $ 5.8 billion, with a deposit of $ 3.3 billion in the NIA system after covering the basic needs.
The main initiatives, according to the fourteenth administration, include the formation of working groups for the seventh development plan and the petrochemical treasury, the launch of energy providing, and the demonstration of artificial intelligence strategy, and a feasibility studies for various projects. The priorities of the efforts made to simplify the license and safe financing have also been determined for suspended projects.
It was collected by SM Ahmadi Al -Qasim
