Hassan Abbaszadeh, speaking at the closing session of the 33rd meeting of
petrochemical company chief executives, said NPC, the petrochemical employers’
association and leading holding firms “function as a joint headquarters” with
complementary roles.
He highlighted gas supply security as a top priority, particularly in
winter, noting that salt caverns in southern Iran could be used to store
volumes sufficient to cover three months of petrochemical demand. The plan is
under review with the National Iranian Gas Company, he said.
Abbaszadeh pledged to cut red tape in upstream contracts, pointing to the
removal of a compliance committee that often caused lengthy delays. He also
said discussions with parliament’s energy commission were underway to establish
an “optimal pricing scenario” for feedstock gas ahead of the 2026 state budget.
NPC is preparing a roadmap for the petrochemical industry through 2051 with
input from private investors, experts and holding companies, Abbaszadeh added.
A parallel programme aims to digitise production data across the chain through
mandatory smart mass meters, in line with Iran’s seventh development plan.
Policy and Regulatory Issues
Abbaszadeh cited taxation, import feedstock rules and corporate social
responsibility (CSR) requirements as areas requiring urgent reform. He said
current tax treatment “does not match the industry’s standing” and confirmed
work on a bylaw to exempt companies importing feedstock from restrictions that
oblige them to sell output on domestic exchanges.
On CSR, he said a new regulation allows up to 3% of companies’ revenues to
be allocated to provincial development projects via a national platform, though
ambiguities remain over whether this should be based on income or profit.
Global Pressures
The NPC chief warned of international regulatory shifts, including moves at the
United Nations toward a binding treaty on plastic pollution. “Severe
restrictions are being imposed on PVC production and some polymers,” he said,
noting that while opposition from Iran, China, the United States and Gulf
states had delayed approval, “eventual adoption is inevitable.” NPC has
established a monitoring centre to track and brief industry players on these
developments.
Market Expansion and Governance
Abbaszadeh criticised the lack of a centralised commercial strategy for
exports, pointing to missed opportunities in Africa, where Russia has swiftly
built market share following Western sanctions. “We need to move towards
professional trading,” he said, urging creation of specialist units to target
new markets.
He also called for arbitration mechanisms within the industry to resolve
disputes without resorting to courts, and said new standards will be set for
evaluating petrochemical executives’ professional qualifications, with a draft
regulation to be submitted to the cabinet.
On profitability metrics, Abbaszadeh argued that official reliance on
reported corporate earnings distorts policy, since balance-sheet values are
outdated. NPC, he said, is working with industry associations to base decisions
on actual production costs instead.
“The petrochemical sector is on the path of progress,” he concluded, “but
progress will only be sustained if we maintain cohesion, modernise governance,
and anticipate global shifts.”