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Current Estimates: Iran is the largest LPG producer in the Middle East, with an annual production capacity of around 12 million metric tons (Mt), as noted in a 2025 X post. This aligns with industry estimates, though official figures are scarce due to sanctions and limited transparency.
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Export Volumes as Proxy: In 2023, Iran exported over 1 million barrels per day (b/d) of petroleum products, with LPG (propane and butane) accounting for a significant portion—likely over 70% alongside fuel oil and diesel. Assuming LPG constitutes about 8–10 million tons of these exports annually, production capacity must exceed this to meet domestic demand and exports.
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South Pars Gas Field: The offshore South Pars field, a cornerstone of Iran’s gas production, significantly contributes to LPG output. While primarily focused on natural gas (with a potential capacity of 9.49 trillion cubic feet per year), associated liquids like propane and butane are extracted during processing. Exact LPG yields from South Pars are not publicly detailed, but it’s a major source.
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Refinery and Gas Processing: Iran’s crude oil distillation capacity is approximately 2.1 million b/d, with an additional 0.6 million b/d in condensate splitter capacity as of 2024. LPG is produced both at refineries (from crude oil) and natural gas processing plants (from natural gas liquids). In 2014, natural gas processing plants contributed to LPG output alongside naphtha, though specific volumes weren’t quantified.
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Historical Growth: Iran’s natural gas production, a key source of LPG, grew steadily despite sanctions, reaching 8.4 trillion cubic feet (Tcf) of dry natural gas in 2019. LPG is derived from natural gas liquids (NGLs), which are separated during gas processing. The growth in gas production, particularly from South Pars, suggests a corresponding rise in LPG capacity over the past two decades.
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Ambitious Plans: In the early 2000s, Iran aimed to expand its petrochemical output (including LPG) from 9 million tons in 2001 to 100 million tons by 2015. While this target was not met, output capacity reached 15 million tons by 2006, indicating a focus on processed petroleum products like LPG.
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Sanctions Impact: Sanctions have delayed LNG infrastructure (e.g., a $16 billion CNOOC deal for North Pars in 2008), but LPG production has been less affected since it relies on existing refinery and gas processing infrastructure. Still, limited foreign investment and technology access cap efficiency and expansion.
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Domestic Consumption: Iran’s domestic LPG demand is substantial, used for heating, cooking, and as vehicle fuel (autogas). In 2014, Iran consumed about 1.8 million b/d of petroleum products, with LPG meeting part of this demand, though gasoline and diesel dominate. Domestic production largely covers this, with minor imports (e.g., 61,000 b/d of petroleum products in 2014, mostly gasoline).
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Export Markets: Iran exports LPG to Asia (e.g., China, India, South Korea) and regional neighbors. A sprawling network, led by figures like Seyed Asadoollah Emamjomeh, has shipped hundreds of millions of dollars’ worth of LPG, evading U.S. sanctions. This network’s scale suggests production capacity is robust enough to support both domestic needs and large-scale exports.
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Iran’s government and National Iranian Oil Company (NIOC) don’t regularly publish detailed LPG breakdowns.
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Sanctions obscure trade and production transparency.
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Much of the data (e.g., 2014–2023) is outdated or focuses on crude oil and natural gas, not LPG specifically.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated Iranian national and liquified petroleum gas (LPG) “magnate” Seyed Asadoollah Emamjomeh and his corporate network, for his role in shipping hundreds of millions of dollars’ worth of Iranian LPG and crude oil to foreign markets. Emamjomeh’s expansive network includes a vessel, the 2024-built Tinos I, which intended but failed to load cargo last year on its maiden voyage off the coast of Houston.
“Emamjomeh and his network sought to export thousands of shipments of LPG—including from the United States—to evade US sanctions and generate revenue for Iran,” said secretary of the treasury Scott Bessent.
For more than a decade, Iran-based Emamjomeh and his son, United Arab Emirates-based British and Iranian national Meisam Emamjomeh, have owned and operated an LPG sales, transportation, and delivery network using multiple Iran and UAE-based companies. Emamjomeh and his UAE-based company, Caspian Petrochemical are part of a network that has exported thousands of shipments of LPG from Iran to Pakistan and have conducted tens of millions of dollars in business on behalf of Persian Gulf Petrochemical Industry Commercial Co. (PGPICC).
This marks the seventh round of sanctions targeting Iranian oil sales since president Donald Trump issued National Security Presidential Memorandum 2 (NSPM-2), instituting a campaign of maximum economic pressure on Iran.
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