Customs data from the Islamic Republic of Iran shows that liquefied propane, with $3.635 billion, and liquefied butane, with $2.211 billion, were the second and third largest export commodities in 1403, following natural gas.

Thus, NGLs are Iran’s most lucrative exports after crude oil and natural gas. Yet, with the world’s second-largest gas reserves and a strategic position in the Persian Gulf, Iran has immense potential to become a major NGL producer and exporter. Achieving this, however, requires significant investment.

 Strengthening Iran’s role in energy value chain 

Investing in NGL production is not just an economic opportunity but a strategic necessity to increase foreign currency revenue, reduce resource waste, and enhance Iran’s position in the energy value chain. Developing gas liquid extraction projects in oil fields can increase product value by up to 10 times compared to exporting raw gas.

Beyond economic benefits, such investments also have positive environmental impacts. Currently, some associated gas from offshore oil fields is flared due to a lack of processing facilities.

 Iran’s commitment to competing in thriving NGL market 

Expanding Iran’s NGL sector requires national resolve, attracting investment, and adopting advanced technologies. Given intense regional competition, Iran must accelerate joint field development projects to secure its share of the growing NGL market. This would not only boost production but also reduce reliance on oil revenues and support a resilient economy.

In this context, the Iranian Offshore Oil Company (IOOC) has introduced a special investment opportunity at the Upstream Oil and Gas Investment and Development Transformation Event. The project aims to produce 700,000 tons of C3+ (three-carbon and heavier molecules) annually, along with 150 million standard cubic feet per day of light sweet gas.

The National Iranian Oil Company (NIOC) has also presented over 200 investment opportunities—for large, medium, and small investors—under various contractual frameworks at the same event. Increased investment in this sector is expected to expand Iran’s share of the global NGL market.