Despite enduring heavy Western sanctions, Iran is projected to significantly increase its foothold in the Middle East's oil and gas chemical market post-2025, potentially surpassing key competitor Saudi Arabia in polyethylene production and gaining ground in methanol and ethylene glycol sectors. These findings stem from a study conducted by experts at the Analytical Center for the Fuel and Energy Complex (AC FEC), as published on the InfoTEK portal.
Currently, Iran holds 25% of the total production capacity of the petrochemical industry in the Middle East, trailing only behind Saudi Arabia. The study forecasts Iran's ascendance, stating, "Competition between Iran and Saudi Arabia in production and marketing of petrochemicals is intensifying." By 2025, Iran is expected to outstrip Saudi Arabia in polyethylene production capacity, with a projected 32% lead by 2028, according to AC FEC projections.
Iran's polyethylene production capacity is slated to surge from 5.4 million tons in 2022 to 15 million tons by 2028, claiming the largest share in the Middle East at 38%.
Meanwhile, Iran's methanol production capacity nearly doubles that of Saudi Arabia, currently standing at 14 million tons versus 7.5 million tons. The study anticipates Iran's share of the Middle East methanol market to rise to 60% by 2027, with Saudi Arabia's share diminishing to 26%.
In the ethylene glycol sector, where Saudi Arabia currently dominates with a 75% market share in the Middle East, Iran aims to bolster its capacity from 1.1 million tons to 1.5 million tons by 2035, elevating its market share to 15%.
Sanctions notwithstanding, Iran's petrochemical industry remains export-oriented, accounting for 21% of the country's non-oil exports. This strategic focus allows Iran to mitigate the impact of sanctions by exporting alternative products to crude oil.
Iran's plans include constructing nine petrochemical parks with a total investment of $5.5 billion, with an anticipated annual capacity of approximately 4.7 million tons of various petrochemical products.
Despite limitations on foreign direct investment and technology exchange due to sanctions, Iran's petrochemical sector continues to thrive, supported by government initiatives to produce higher value-added products and mitigate the impact of oil export restrictions imposed by Western countries.
AC FEC experts highlight the sector's growth, citing both export opportunities and rising domestic demand. They also advocate for the establishment of joint Russian-Iranian enterprises to foster collaboration in catalyst production, chemical reagents for oil production, engineering compounds, and more.
GSV "Russia - Islamic World"
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Based on materials from TASS