Hassan Abbaszadeh, Deputy Petroleum Minister and Managing Director of
the National Petrochemical Company (NPC), said the measure — part of the
national land-use planning framework — has been officially communicated to all
petrochemical holding groups and companies.
“Based on this decree, water-intensive industries must be located
along the coasts, but value-chain projects can still be implemented in other
provinces, including Fars,” Abbaszadeh told NIPNA.
He added that negotiations are underway with domestic and foreign investors
for a new urea-based coating project in Fasa, noting that the technology will
be provided by an international partner. The official also highlighted ongoing
urea fertilizer production at the Shahid Marvdasht Petrochemical Plant.
The new regulation follows a cabinet resolution adopted in May 2025,
which aims to align industrial development with the country’s national and
provincial land-use plans. The framework designates the Supreme Council for
Land-Use Planning as the supervisory body responsible for ensuring compliance.
Under the new rules, all provincial planning councils must obtain
confirmation of compatibility with land-use documents before approving
industrial projects. Environmental standards are also to be strictly applied
and communicated by relevant agencies.
According to the directive, water- and energy-intensive industries
will only qualify for government incentives and discounted inputs — including
water, power, fuel, and feedstock — if located in the designated southern
coastal zones. Those established inland without natural or economic
justification will be charged based on full cost pricing.
The Ministry of Industry, Mine and Trade, in coordination with the
Ministries of Energy and Petroleum, the Department of Environment, and the Plan
and Budget Organization, will finalize and submit the list of water- and
energy-intensive industries to the Supreme Council for approval.