Ahmad Jalilianfard, Director of Projects at the National Petrochemical Company (NPC), is one of the managers whose approach to developing the industry is rooted in precision, engineering discipline, and adherence to accurate data. He believes one of the country’s challenges is drifting away from scientific methods and ignoring numerical accuracy, stressing that even a one percent deviation in statistics can alter the results of a project.

Jalilianfard, who personally tracks and inspects the progress of projects every week without exception, bases his management method on field supervision, precise data recording, and continuous review. He argues that Iran’s petrochemical industry today needs accuracy and transparency more than ever, and such rigor can guarantee the success of the Seventh Development Plan and the completion of the industry’s value chain.

According to Jalilianfard, implementing the Seventh Development Plan is the most important priority for the petrochemical industry during the 14th administration. The plan, anchored by 66 strategic petrochemical projects, charts the sector’s future in production, revenue, job creation, technological advancement, and infrastructure development. To explore the dimensions of this plan, SHANA (the Petro Energy Information Network) spoke with Ahmad Jalilianfard.

What is the most important priority for the petrochemical industry in the 14th administration, and what key strategies and development approaches have been defined under the Seventh Development Plan?

The year 1404 (March 2025–March 2026) has been designated by the Leader as the year of “Investment for Production.” Following the guidance of Hassan Abbaszadeh, Deputy Oil Minister for Petrochemicals, the focus is on achieving the Seventh Development Plan. Sixty-six petrochemical projects have been defined, which will raise the nominal capacity of the industry to 131.5 million tons by the end of the plan.

Nineteen of these projects are scheduled for launch in 1404, each with unique features. Four of them are feedstock supply projects with $2.4 billion in investment to produce 2.8 million tons of C2+ annually. These include NGL 3100, Phase II of NGL 3200 in West Karoun, Phase I of Bidboland flare gas recovery in Rag Sefid, and flare gas recovery and upgrading in Ahvaz, East Karoun. The NGL 3100 plant was recently inaugurated.

The first phase of the East Karoun flare gas recovery project at Rag Sefid has been completed, gathering 2.67 million cubic meters per day of gas and shutting down 10 flares. NGL 3100 has also started production, initially processing 80 million cubic feet of feedstock daily, sending C2+ to NGL 3200 and then to Bandar Imam Petrochemical. For this, a 178-kilometer pipeline has been constructed.

In addition, 15 petrochemical production projects with a combined capacity of 6.8 million tons will be launched in 1404. Together with the C2+ from flare gas recovery, about 10 million tons will be added to the industry’s output. These projects mainly belong to the midstream segment of the value chain. Only one project, Apadana Methanol, is based on natural gas feedstock.

Will the promise of commissioning one project per month in 1404 be fulfilled?

Absolutely. According to the deputy minister, one or even two projects will be launched every month. In addition to NGL 3100, several projects have already reached commercial production, including Phase I of Bidboland flare gas recovery, Kimia Sanat Dalahoo, Kimia Sanat Petro Entekhab in Assaluyeh, and Apadana Persian Gulf, though they have not yet been officially inaugurated. So far, one project has been inaugurated and four are ready for official launch. The Arghavan Gostar Ilam project has also begun initial production. In effect, six projects have been completed in five months.

How will Iran’s petrochemical product basket change with these new projects?

New products this year include methanol at Apadana Persian Gulf; general-purpose and high-impact polystyrene at Kimia Sanat Petro Entekhab (Isfahan) and Kimia Sanat Dalahoo; isopropyl alcohol (a first-time product) at Arman Sepahan; polypropylene at Arghavan Gostar Ilam; urea at Hengam Petrochemical; ethylene and polyethylene at Kangan Petrochemical; and ethylene and ethylene glycol at Bushehr Petrochemical.

Additionally, Phase II of Hoveyzeh Persian Gulf Gas Refinery (NGL 3200) will come online this year, adding more than 70 million cubic feet per day of feedstock capacity. The pure ethylene oxide unit of Marun Petrochemical is also ready but awaits the start of its downstream Petronad ethoxylates unit in March. A pipeline connecting Marun’s ethylene oxide to Petronad is under construction and will be completed within two months. Styrene-butadiene rubber at Sadaf Petrochemical is scheduled for production by March, and the Salman Farsi PDH project—the country’s first—will also be completed this year.

Are infrastructure projects also included?

Yes. The first phase of the 1,000 MW power plant at Makoran Petrochemical Complex in Chabahar has been launched with 183 MW capacity. Damavand Energy in Assaluyeh will soon start up another 183 MW turbine. A 1,250 cubic meter/hour demineralized water unit at Damavand has also been commissioned, expected to reach full capacity of 2,083 cubic meters/hour by late September, solving water shortages. The third oxygen unit at Damavand is under construction and will be operational in the first half of 1405 (2026).

What impact will these projects have on job creation?

The 19 petrochemical projects will create 3,985 direct and 8,472 indirect jobs, significantly benefiting local communities.

Will the planned 8% annual growth and the timely completion of projects under the Seventh Development Plan be achieved?

Yes. Precise planning has been made for all 66 projects. Nineteen projects with \$6 billion investment and 10 million tons of capacity are set for 1404. Detailed planning exists for subsequent years to reach the 131.5-million-ton target. Over 50% of the required investment has already been secured. Notably, two projects—Nakhl Asmari Petrochemical and ABS Polymer Pad Jam—were completed in 1403.

These projects surely face development challenges. How are they being addressed?

Challenges exist, both internal and external, such as foreign currency allocation, financing, or coordination with other ministries. Weekly meetings and site visits are held to resolve them. A special working group for priority projects was formed in February 2025 to monitor strategic and import-substitution projects.

Does financing remain a challenge, given international restrictions?

Most projects are run by large petrochemical holdings, which can fund development through their export revenues. Private projects have also been identified and granted access to foreign exchange via official channels, in addition to rial financing from banks.

What about equipment procurement?

So far, none of the projects face equipment shortages. Many items have been localized, with dependency on imports minimized except for rotary or highly sensitive equipment. Domestic manufacturers have grown significantly and now provide over 75% of project needs. For example, the reactor for Apadana Methanol was designed under foreign license but built domestically for the first time.

How much have knowledge-based companies contributed?

They play a major role. The petrochemical industry now meets at least 75% of its needs domestically through local manufacturers and knowledge-based firms. The remainder involves licensed equipment, where compliance is necessary for performance guarantees.

The Seventh Development Plan emphasizes completing the value chain. How is this reflected?

Projects were selected based on their ability to come online by 2028 and their alignment with value chain integration. For instance, among the 19 projects for 1404, only Apadana Methanol uses gas feedstock.

Is there public investment in petrochemical projects?

Yes. Many holdings are publicly listed, so citizens indirectly own shares. Most projects are private sector–driven and will either remain in the stock market or eventually list.

What is the role of sensitive imported equipment under current international conditions?

The industry has matured and can largely meet its needs domestically. Licensed equipment is still procured via appropriate mechanisms. Overall, dependency on foreign equipment is steadily declining and could reach zero in the near future.

Where will Iran’s petrochemical industry stand at the end of the Seventh Development Plan?

Capacity will rise from today’s 96.6 million tons to 131.5 million tons by 2028—a historic leap not only in volume but also in global ranking. By the end of this year, capacity will surpass 100 million tons for the first time. Compared to competitors, Iran’s growth rate and scale will be highly significant.

What is the 10-year outlook?

By the end of the Seventh Plan, the roadmap is clear. With the Eighth Plan, about 55 million tons will be added through 50 new projects, requiring tens of billions of dollars in investment.

How much support do government and institutions provide?

Collaboration has improved significantly. Coordination with the Ministry of Industry, Mine, and Trade is also improving. While some regulatory hurdles remain, they are manageable and part of legal obligations.

What about infrastructure projects like ports?

Infrastructure is critical. In Phase I of Pars Petrochemical Port, berths 1–15 are being upgraded. Berth 7 is operational, berth 8 will be ready within a month, berth 10 for solids is delivered, and berth 12 for LPG exports will be delivered by year-end. Other berths are also being equipped.

In Phase II of Assaluyeh, berths 16 and 17 are under development. Notably, a domestically built cryogenic loading arm was installed at Berth 17 for exporting ammonia from Hengam Petrochemical. The berth is 17% complete and will be finished on schedule. In Mahshahr, berth renovation is underway, with Berth 1 to be completed early next year. A flood drainage canal in Assaluyeh is also progressing and will be finished in early 1405 (2026).

What is the total investment in infrastructure projects?

The National Petrochemical Company has invested €82.2 million and 1.438 trillion tomans in these infrastructure projects.

Interview by

Samaneh Bidmeshk