Iran Oil and Gas Downstream Market Size (2024 - 2029)

Iran Oil and Gas Downstream Market Size Summary

The Iran oil and gas downstream market is poised for growth, driven by increasing domestic demand for oil and natural gas, alongside significant investments in refineries and gas processing facilities. Despite challenges posed by United States sanctions, which have hindered oil exports and limited foreign investment, the market outlook remains positive. The expansion of refineries and the potential to become a key natural gas supplier in the region, supported by agreements with neighboring countries, are expected to bolster the sector. The Iranian government's focus on enhancing investment in the downstream industry is anticipated to be a major catalyst for growth.

The market's expansion is further supported by increased oil production, which reduces transportation costs and boosts refinery throughput. Notable projects, such as the construction of the Bidboland Persian Gulf Gas Refinery, are set to enhance gas processing capacity and petrochemical production. Despite slow growth in refining capacity due to sanctions, the sector benefits from substantial gas reserves and ongoing investments in upstream production, particularly in fields like South Pars. The market is consolidated, with key players including the National Iranian Gas Company and the National Iranian Oil Refining and Distribution Company, which are instrumental in driving the industry's development during the forecast period.