Iran’s Petchem Sector Regaining Lost Capacity

Iran’s petrochemical industry is steadily restoring production capacity lost during the recent conflict, demonstrating its resilience and strategic importance to the country’s economy.

As one of Iran’s key sources of export revenue and a major supplier of feedstock to downstream industries, the petrochemical sector faced significant challenges during attacks that targeted critical infrastructure. Despite the damage, industry specialists, managers and workers maintained operations and quickly launched recovery efforts to prevent disruptions in production and supply chains.

The conflict came at a human cost. Six petrochemical industry employees were killed while carrying out their duties, underscoring the risks faced by workers in maintaining essential operations during the crisis.

Some of the damage affected gas processing facilities that supply natural gas and condensates to petrochemical plants, disrupting feedstock deliveries to certain complexes. Power plants and utility facilities that provide electricity and steam to petrochemical sites were also hit, temporarily reducing production capacity. Several petrochemical units were directly damaged and forced to suspend operations.

Recovery and reconstruction efforts began immediately. Hassan Abbaszadeh, managing director of the National Petrochemical Company, said special committees were formed to maximize the use of available resources, secure alternative steam supplies and provide electricity through existing oil industry facilities, grid-connected power plants and the energy exchange market.

According to Abbaszadeh, about 38% of the production capacity that had been lost or affected has already returned to operation. A two-month recovery plan is underway, with its first phase scheduled for completion by late June.

Signs of normalization are becoming increasingly visible. Petrochemical complexes including Nouri, Ghadir and Sabalan have resumed operations, while Arya Sasol Polymer recently announced that its light polyethylene and medium- and high-density polyethylene units have returned to full production capacity.

The industry’s recent performance highlights the effectiveness of domestic technical expertise, coordinated management and workforce commitment, while reinforcing the sector’s role in ensuring stable supplies for downstream industries and supporting economic stability. - Shana