Hengam Petrochemical Company reported a threefold increase in ammonia sales revenue during the spring-summer period of 2026, reaching 107 trillion rials, as the company maintained production despite regional disruptions, supply-chain constraints and restrictions on shipping through the Strait of Hormuz.
The company said it produced more than 187,000 tonnes of ammonia and approximately 20,000 tonnes of urea during the period, marking progress towards its operational targets under challenging conditions.
Shipping restrictions put pressure on operations
Hengam’s performance came amid mounting logistical difficulties, particularly during the final two months of the reporting period. Restrictions associated with the closure of the Strait of Hormuz, together with safety requirements and directives issued by the regional Crisis Committee, complicated storage, loading and sales operations.
The company said measures taken by its management team helped limit the impact of these constraints on production. However, the restrictions underscored the vulnerability of petrochemical supply chains to disruptions in maritime transport and export logistics.
Urea unit commissioned with domestic expertise
A key operational development was the commissioning of Hengam’s urea unit without the presence of a foreign licensor.
According to the company, the project faced technical challenges, including design and mechanical deficiencies in some rotating equipment inherited from earlier project stages. It also cited a lack of cooperation from foreign manufacturers in repairing and commissioning the machinery.
Hengam said its own technical teams, supported by domestic specialists, addressed a substantial part of these problems and brought the unit into operation by relying on local engineering and technical capabilities.
The achievement highlights the role of domestic expertise in overcoming equipment and technical-service constraints, particularly when access to foreign manufacturers and licensors is limited.
Production growth within PGPIC
Hengam Petrochemical’s latest performance follows its ranking as the fourth-highest company in Persian Gulf Petrochemical Industries Company (PGPIC) Holding in terms of production growth, according to the holding’s annual general meeting report.
The company attributed its progress to management decisions, workforce capabilities and operational improvements. Its ability to sustain production and commission the urea unit during a period of external disruption will be an important factor in its efforts to strengthen its position within the holding.
Nevertheless, the longer-term impact of the reported revenue growth will depend on production continuity, sales volumes, export access and the company’s ability to manage logistical and equipment-related risks.
