The first phase of a massive petrochemical project coming up in Iran will be operational by the end of the current Iranian calendar year (March 20, 2015), said a report, citing a senior government official.

Iran has significantly expanded the range and volume of its petrochemical production over the past few years. Petrochemicals account for 40 per cent of Iran's non-oil exports.

"Fortunately, the process of completing the project has been satisfactory," Jafar Katani, the governor of Iran's north-western city of Mahabad, said in an interview with the Tasnim News Agency on Saturday.

"The inauguration of the project would make a huge change in employment, sustainable development, further investment and participation of private sector in downstream industries," the Iranian official said.

The Islamic Republic, which holds the world's third-largest proven oil reserves and the largest natural gas reserves, is determined to become the biggest petrochemical producer in the Middle East.-Reuters