Salman Farsi Petrochemical Company
Salman Farsi Petrochemical Company is developing a propane dehydrogenation project at Site 2 of the Petrochemical Special Economic Zone in Mahshahr, Khuzestan Province. The planned plant is designed to produce 450,000 tonnes per year of propylene from propane and has been positioned as part of Iran’s domestic propylene-chain expansion. Progress reached 67% in November 2023, but the supplied evidence does not confirm commercial operation.
Market position
The project has been presented as Iran’s first initiative intended to complete the propylene production chain through propane dehydrogenation. Its planned 450,000-tonne annual propylene capacity would add a dedicated domestic propylene route in the Mahshahr petrochemical cluster, with potential relevance to downstream polymer production. This prospective position remains contingent on completion and commercial commissioning.
Operations & footprint
Products and services
Salman Farsi Petrochemical Company is linked to propane dehydrogenation and propylene-chain development, with expected downstream relevance to polypropylene, acrylonitrile, polymer materials, plastic conversion, packaging, automotive components, industrial parts, and export-oriented petrochemical products connected to Mahshahr's petrochemical special economic zone.
Operations and assets
The planned Mahshahr plant uses propane as feedstock for a propane dehydrogenation process and is designed for 450,000 tonnes per year of propylene production. The project reportedly began in 2009 and was reported 67% complete in November 2023. Six burner devices for 150-ton boilers were reportedly manufactured and dispatched in June 2024.
Geographic footprint
Plant: Site 2, Petrochemical Special Economic Zone, Mahshahr, Khuzestan Province, Iran. Headquarters: Tehran, Iran.
Ownership & group structure
Ownership
Project-level construction and installation shareholdings were reported as Rizal Petrochemical 46%, Maron Petrochemical 34%, Zarif Mosur Company 10%, and a private individual 10% as of November 2023. These reported project interests should not be treated as a complete or current corporate ownership record. The project has also been described as having backing from the National Petrochemical Company.
Commercial and investment relevance
Salman Farsi Petrochemical is relevant for investors assessing Iran's propylene gap, PDH project pipeline, polypropylene supply, downstream plastics, and Mahshahr's petrochemical cluster. It can support analysis of where new feedstock routes may create opportunities for polymer converters and industrial users. Due diligence should verify whether the project is fully operational, current ownership, financing status, contractor exposure, product slate, feedstock supply, utility access, environmental compliance, sanctions exposure, port logistics, and actual offtake arrangements. The project’s commercial relevance is tied to a planned new source of propylene rather than confirmed current output. If commissioned, the unit could supply a key petrochemical intermediate to downstream producers and strengthen the domestic propylene chain envisioned for export-oriented polymers. Its location within Mahshahr’s Petrochemical Special Economic Zone may also support integration with the area’s established petrochemical infrastructure.
Constraints, risk & compliance
Key risks and constraints
Commercial status remains unverified despite reported completion targets. The project’s realization and market value depend on successful construction and commissioning, reliable propane feedstock and utilities, downstream offtake, financing and compliance with sanctions-related and other applicable trade requirements.
Sanctions and compliance considerations
The project is in Iran’s petrochemical sector, where counterparties should assess applicable sanctions, export-control, banking, shipping and counterparty-screening requirements before any transaction. No supplied evidence establishes a specific sanctions designation for the company or project.
Need more than a public profile?
Ask Hormuz to investigate, verify or act locally around Salman Farsi Petrochemical Company. Tell us exactly what you need.
Connected Intelligence
Relevant geography, industry, market and execution context for this profile.
Frequently asked questions
Direct answers to the questions most likely to arise when reviewing this profile.
What is Salman Farsi Petrochemical Company developing?
It is developing a propane dehydrogenation plant in Mahshahr designed to produce 450,000 tonnes per year of propylene.
Is Salman Farsi Petrochemical Company operational?
Commercial operation is not confirmed by the supplied evidence. The project was reported 67% complete in November 2023 and was later included among projects expected to become operational by March 20, 2026.
Where is the Salman Farsi propylene project located?
The plant is located at Site 2 of the Petrochemical Special Economic Zone in Mahshahr, Khuzestan Province, Iran.
What compliance considerations apply to the project?
Transactions involving Iran’s petrochemical sector require case-specific assessment of applicable sanctions, export controls, banking, shipping and counterparty-screening requirements.