The plan, endorsed by the cabinet and formally communicated to
petrochemical firms and holding companies, is designed to end decades of uncoordinated
expansion that placed heavy industries in water-scarce or infrastructure-poor
regions. Under the new framework, water-intensive plants must be located in
coastal areas, while the establishment of such facilities in inland provinces
will be prohibited.
Strategic Coastal Development
Locating petrochemical complexes along Iran’s southern coasts — bordering the
Persian Gulf and the Sea of Oman — follows global best practices, ensuring
proximity to water, energy resources, and export routes. The coastal regions
offer direct access to global shipping lanes, proximity to the South Pars gas
field, and reduced logistical and feedstock transport costs, making such siting
both environmentally and economically sound.
Balancing Growth and Resource Efficiency
NPC Managing Director Hassan Abbaszadeh said the plan does not halt development
in non-coastal areas, but rather encourages complementary projects that
complete the value chain in provinces with existing industrial bases such as
Fars. This approach shifts focus from quantity to quality — from random
expansion to integrated, value-driven growth.
Cross-Ministerial Coordination
Implementation will involve multiple agencies, including the Ministries of
Petroleum, Energy, and Industry, as well as the Planning and Budget
Organization and the Department of Environment. New petrochemical projects will
require certification of compliance with zoning guidelines before being
approved by provincial development councils.
Economic, Environmental, and Social Benefits
The plan is expected to curb overextraction of groundwater, optimize energy
consumption, and reduce industrial pollution in sensitive regions.
Economically, it will lower production and transport costs while increasing export
competitiveness through coastal industrial clusters. Socially, it aims to
generate stable employment and reduce regional inequalities by promoting
investment in underdeveloped coastal provinces such as Khuzestan, Bushehr,
Hormozgan, and Sistan-Baluchestan.
Policy Enforcement and Industrial Governance
Projects established in violation of the zoning framework will be excluded from
government incentives and subjected to full-cost energy and feedstock pricing,
ensuring efficient resource allocation and discouraging speculative
development.
Outlook: From Expansion to Smart Growth
For decades, Iran’s petrochemical expansion prioritized capacity increases. The
new plan marks a strategic transition toward sustainable, knowledge-based, and
regionally balanced development. Future projects will be evaluated based on
environmental impact, geographic suitability, and integration within national
value chains.
Analysts say the move signals a policy shift toward long-term
industrial governance, positioning the petrochemical sector — a key non-oil
driver of Iran’s economy — as a model of sustainable and responsible growth
across the region.