The sector, a vital part of Iran’s economy, plays a crucial role in supplying raw materials for downstream industries, boosting non-oil exports, and creating jobs. The year was filled with opportunities, challenges, and policy shifts, including energy optimization measures. This report provides an overview of the industry’s key developments in 1403. 

 Operational projects 

- Hengam Petrochemical’s Ammonia Unit: The first phase of Hengam Petrochemical’s ammonia unit, with a $328 million investment, began operations on June 24. The unit, licensed by Denmark’s Haldor Topsoe, has an annual capacity of 725,000 tons of ammonia and 1.155 million tons of urea, licensed by Italy’s Saipem. Total investment in the project was €538 million. 

- Arian Methanol Petrochemical: With an annual production capacity of 1.65 million tons and a $243 million investment, Arian Methanol Petrochemical became operational on June 24. It processes 1.531 billion standard cubic meters of natural gas and 671 million standard cubic meters of oxygen annually. 

- Damavand Energy’s Gas Unit: Damavand Energy’s fourth air separation unit (Unit 4-ASU II) in Asaluyeh, with an $82 million investment, started operations on June 24. It produces industrial gases, including high- and medium-pressure oxygen, nitrogen, and instrument air. 

- Bu Ali Sina Petrochemical’s Paraxylene Unit: After reconstruction following a 2016 fire, the paraxylene unit resumed operations on June 24 with a $40 million investment. The upgraded unit has an annual capacity of 430,000 tons. 

- Nakhl Asmari Petrochemical: After 20 years, this $43 million methanol value chain project became operational on June 24, producing 31,000 tons annually of acetaldehyde, paraformaldehyde, and pentaerythritol. 

- Bandar Imam Petrochemical’s Wastewater Treatment Plant: The first phase of this $40 million strategic project, with an annual capacity of 8,300 tons, was launched to protect the marine ecosystem near Mahshahr Port. 

- Padjam Polymer’s ABS Unit: Lines 3,000 and 4,000 of Padjam Polymer’s ABS unit, with a 120,000-ton annual capacity, began operations on February 13. 

 Agreements & MoUs 

- Gas Field Development: Petrochemical holdings and exploration firms signed MoUs worth $6.4 billion on May 1 to develop 16 gas fields, aiming to boost Iran’s gas production by 127 million cubic meters to ensure stable feedstock supply. 

- Research Partnerships: The Petroleum Industry Research Institute signed cooperation agreements with Petrochemical Industries of Masjed Soleyman and PetroFarhang Holding to develop methanol value chains, carbon management, and digital transformation.  

- Downstream Projects: Eight petrochemical value chain agreements were signed on May 12 at the 28th Iran International Oil, Gas, Refining, and Petrochemical Exhibition, covering benzene production, pipe threading, olefin units, and propylene parks. 

- AI in Petrochemicals: On February 25, an agreement was signed to develop AI-driven industrial assistants for Iran’s petrochemical sector, enhancing operational efficiency and transparency. 

 Localization & achievements 

- Domestic Catalyst Production: 

  - Shiraz Petrochemical localized platinum-rhodium catalyst gauze for nitric acid production. 

  - Shahid Tondgouyan Petrochemical developed a palladium catalyst, previously monopolized by BASF (Germany), Chimet (Italy), and Nechimcat (Japan). 

  - Marvdasht Petrochemical replaced imported hydrogenation catalysts with domestically produced ones. 

- New Polymer Grades: AriaSassoul Polymer developed a new medium-density polyethylene grade for drip irrigation tapes, a first in Iran. 

 Unveilings 

- Smart Value Chain Platform: Launched on May 8, this system enhances supply-demand coordination in the petrochemical industry. 

- New Catalysts & Products: Two catalyst production units and 10 petrochemical products were unveiled on May 12, including nitrogen-sulfur fertilizers and advanced polyethylene grades. 

- AI Roadmap: Unveiled on September 11, this plan integrates AI into Iran’s petrochemical sector. 

 Key events 

- 15th Iran Petrochemical Forum (IPF): Held on August 4–5, focusing on clean technology and industry advancements. 

- PetroFan 2024: Iran’s top petrochemical innovation event (December 23–25) addressed technological needs in seven key sectors. 

- IranPlast 2024: The 18th international exhibition (September 8–11) featured 813 domestic and foreign companies. 

- 11th Petrochemical Excellence Award: Held on March 8, recognizing top performers in energy optimization and value chain development. 

 Other news 

- Leadership Change: Hasan Abbaszadeh was appointed acting CEO of National Petrochemical Company (NPC) on October 1 and confirmed on November 12. 

- Petro-Refinery Exports: Hormuz Star Petro-Refinery began exports from Lamerd Special Economic Zone. 

- Hydrogen Boiler: Fanavaran Petrochemical launched a hydrogen-fueled boiler to optimize energy use. 

- Gulf Petrochemical’s Capital Increase: The holding company’s capital rose by 25 trillion tomans to 100 trillion tomans. 

- Mergers: Sabalan and Dana Petrochemicals merged to streamline operations and accelerate the Dana methanol project. 

- Acetic Acid Project Approval: After years of delays, the Lavand Chemical Company’s acetic acid, vinyl acetate monomer, and synthetic ethanol project received preliminary approval. 

This report highlights Iran’s petrochemical industry’s progress in 1403, emphasizing localization, innovation, and strategic partnerships.