Iran's petrochemical industry achieved an installed capacity of 101 million tons in 2025, with actual production exceeding 75 million tons. These figures clearly demonstrate the importance of this industry in industrial production and foreign currency supply for the country; however, there is a significant gap between capacity and production that requires deeper analysis.
Capacity and Production Analysis
According to published reports, the ratio of actual production to installed capacity was 74.3 percent, indicating that production performance is not optimal. The numerical gap between capacity and production amounts to over 26.1 million tons, necessitating an investigation into operational causes and existing limitations. The value of products produced in this year is also estimated to exceed 22 billion dollars.
Read more: Reconstruction of Strategic Industries and the Necessity of Assessing Equipment Security
Export Challenges and Feedstock Supply
The petrochemical industry faces serious challenges regarding feedstock supply and infrastructure. Damage to petrochemical infrastructure in Assaluyeh and Mahshahr in April 2026 led to the halt of petrochemical product exports to prioritize domestic needs. This issue has a direct impact on export revenues and shows that rising global prices do not automatically translate into a competitive advantage for Iran.
The CEO of the National Petrochemical Company announced in October 2026 that about 60 percent of the lost production capacity during the crises has returned to operation. However, assessing the resilience of the industry must include downtime, lost production volume, and its impacts on commercial contracts.
Goals of the Seventh Development Plan
According to Article 47 of the Seventh Development Plan Law, the production of petrochemical products is targeted to reach 131.5 million tons by the end of the plan. In contrast, the installed capacity announced by the National Petrochemical Company will be around 111 million tons. These two indicators are different in terms of definition and function and should be examined separately.
Comparing the 101.4 million tons capacity at the end of 2025 with the target capacity of 111 million tons shows an increase of about 9.5 percent. To succeed in achieving these goals, a precise assessment of operational capacities, feedstock supply, infrastructure, and product sales potential is essential.
Read more: Pemex Needs $110 Billion to Achieve Mexico's Oil Production Goals · Samad Hasanzadeh Considered Kenya as Iran's Gateway to the African Market
