Iran Petrochemicals Report

Published 11 August 2015

  • 78 pages
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Iran Petrochemicals Report

The Iranian petrochemicals industry will reap the rewards of sanctions relief under the P5+1 agreement signed in July, but structural problems will persist until feedstock issues are resolved and the industry opens up to investment and the technology transfer that comes with it. Nevertheless, if the agreement holds, the prospects for strong exports-led growth are good as the government aims to raise capacity from the current 60mn tonnes per annum (tpa) to 100mn tpa by 2020.

Sanctions have had a deleterious impact on the Iranian petrochemicals industry due to the collapse of the domestic economy, the lack of investment and the difficulties in exporting output. Iranian petrochemicals producers were directly targeted by sanctions. The relief of sanctions should raise the operating rates from 68% of capacity, as they were in 2014, even as capacity grows. In 2015/16, Iran plans to open 11 petrochemical units, increasing the country's petrochemical production by 6mn tonnes.

Europe is among the markets Iranian producers are aiming to export to, but they will have to overcome major structural problems in the sector. These include feedstock problems, with the industry yet to take full advantage of the country's massive gas resources. Also, the decline in naphtha costs have undermined the profitability of Iran's predominantly ethane-fed production chain, while rivals in Saudi Arabia enjoy lower ethane prices. The task will be to improve the cost structure and value added and boost upstream gas output, ensuring feedstock is integrated with downstream processors.

  • BMI forecasts that by 2019, ethylene capacity alone will total 11.08mn tpa, with the completion of the Olefins 11 and 12 projects, which will have capacities of 2.0mn tpa and 1.2mn tpa respectively.

  • In terms of domestic markets, the automotive industry will lead consumption amid a consumer boom and a strong recovery in exports. By 2017, we see vehicle volumes surpassing 2mn units, more than double the 1mn units...

BMI Industry View
Operational Risk
Industry Forecast
Table: Iran's Petrochemicals Industry, 2011-2019 ('000 tpa, Unless Otherwise Stated)
Macroeconomic Forecasts
Economy To Grow Again On Sanctions Relief
Table: Economic Activity (Iran 2010-2019)
Table: GDP By Expenditure (Iran 2012-2019)
Industry Risk Reward Index
MEA Petrochemicals Risk/Reward Index
Table: MEA Petrochemicals Risk/Reward Index - Q4 2015
Iran Petrochemicals Risk/Reward Index
Market Overview
Table: Iran's Cracker Capacity, 2013-2019 ('000 tpa)
Industry Trends And Developments
Post-sanctions outlook
Upstream Developments
Current plans
Company Profile
National Petrochemical Company
Regional Overview
Middle East And Africa Overview
Feedstock Pricing Concerns
Tightening Ethane Supplies
Diversification Is The Long-Term Focus
Africa Falls Behind
Global Industry Overview
Could US Gas Run out-
Project Curtailments
Medium-term Outlook
Global - Crude Oil, Refined Fuels And Natural Gas Prices, 10-Year Forecasts
Table: Energy Price Forecasts (Global 2013-2018)
Table: Energy Price Forecasts (Global 2019-2024)
Demographic Forecast
Table: Population Headline Indicators (Iran 1990-2025)
Table: Key Population Ratios (Iran 1990-2025)
Table: Urban/Rural Population And Life Expectancy (Iran 1990-2025)
Table: Population By Age Group (Iran 1990-2025)
Table: Population By Age Group % (Iran 1990-2025)
Table: Glossary Of Petrochemicals Terms
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Petrochemicals Risk/Reward Index Indicators
Table: Weighting Of Indicators

The Iran Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's Iran Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Iranian petrochemicals industry.

Key Benefits

  • Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Iranian petrochemicals market.
  • Target business opportunities and risks in the Iranian petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Iran.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis, covering the petrochemicals markets, regulatory changes, major investments, projects and company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the petrochemicals sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Energy: Oil production (‘000 b/d), oil consumption (‘000 b/d), net oil exports (‘000 b/d), gas production (bcm), gas consumption (bcm), net gas exports (bcm), oil refinery capacity (‘000 b/d).
  • Petrochemicals: Ethylene capacity (‘000 tpa), ethylene production (‘000 tpa), ethylene consumption (‘000 tpa), polyethylene capacity (‘000 tpa), polypropylene capacity (‘000 tpa), polyvinyl chloride capacity (‘000 tpa), polyolefins consumption (‘000 tpa).
  • Oil Products Prices: Price forecasts for all major oil-based products (USD/bbl) at major global energy trading hubs.
  • Economic: Nominal GDP (USDbn), real GDP growth (%), GDP per capita (USD), population (mn), unemployment (%), exchange rate (against USD).

BMI’s Petrochemicals Risk Reward Index

BMI’s Risk Reward Indices provide investors (both corporate and financial) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Structure, size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.

Industry Trends & Developments

Evaluation of company and sector-wide developments, including key projects (as well as expansion plans), latest company financial details and proposed international ventures.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Global & Regional Market Overview

Analysis of the key trends driving the global industry, including worldwide output/capacity and demand analysis across ethylene, polyethylene, polyvinyl chloride, polystyrene, polyethylene terephthalate and polypropylene. The regional analysis looks at the implications of local and global trends on specific company activity.

Sub-sectors covered by the Petrochemicals Reports include:

Oil & Gas, Oil Refining, Olefins (ethylene, propylene), Polyolefins (polyethylene, polypropylene), Polyvinyl Chloride, Polystyrene

Please note – not all country Reports cover all sub-sectors – see website for details.


The Petrochemicals Market Reports are based on a network of primary sources, such as multilateral organisations (ACC, APLA, Cefi c, ICCA, ICMA), national chambers of commerce and industry, national statistical offi ces, government ministries and central banks, and multinational companies.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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