Ahmad Zeraatkar, deputy planning minister at Iran’s Ministry of Petroleum, told executives at the 33rd National Petrochemical Company (NPC) leadership meeting that the industry has “outgrown its early development phase” and is now consolidating its role as a key pillar of the energy economy.
“The petrochemical industry’s share of the national energy pie has been separated exclusively,” he said, describing the move as a milestone designed to shield producers from wider fuel constraints. “This sector no longer needs the kind of basic subsidies it once did.”
Zeraatkar acknowledged that parts of the sector still struggle with ageing assets and structural weaknesses. “Experience in upstream oil and gas shows that delays in modernization make recovery in downstream industries far more difficult,” he said, urging future development plans to account for these risks.
Balancing Growth and Constraints
The deputy minister cited macroeconomic pressures, sanctions, budget deficits and regulatory scrutiny as headwinds, but said coordination with the central bank and sovereign wealth fund has created new financing channels. Approvals for petrochemical investments with backing from Iran’s National Development Fund have eased risks and accelerated projects, he added.
He said efforts were also underway to strengthen energy governance and data management across the oil and gas chain, with support from the National Iranian Gas Company and the Ministry of Energy.
Energy Allocation and Reform
Zeraatkar said dedicated gas allocations for petrochemicals have been secured as part of new resource-sharing policies. The government has begun assigning defined shares of natural gas to industries, reducing seasonal uncertainty. “The aim is to guarantee sustainable supply while maintaining economic stability,” he said.
He also pointed to structural problems in energy consumption, noting that cheap subsidised gas undermines efficiency and increases demand. “We are working to redirect energy on a targeted basis, removing monopolies and encouraging industries to rely on sustainable supplies,” he said.
Innovation and Market Rules
Zeraatkar highlighted steps to open the sector to innovation and startups, including an “energy operator” framework approved by the president to allow more flexible use of gas resources. He said reforms were underway to clarify allocations of liquid feedstocks and to cancel unnecessary licences, reducing bottlenecks and promoting transparency.
Despite challenges, he said the petrochemical sector has successfully maintained its share of limited national energy resources and remains central to Iran’s industrial strategy. “Our goal is to clearly define consumption boundaries, reduce pressure points, and unlock the full potential of the country’s oil and petrochemical advantages,” he said.