NPC Secures Sovereign Ruling to Stabilize Petchem Sector

NPC Secures Sovereign Ruling to Stabilize Petchem Sector
(Saturday, February 7, 2026) 13:27

TEHRAN, Feb. 1 (NIPNA) — The National Petrochemical Company (NPC) has obtained a high-level sovereign ruling aimed at resolving longstanding disputes in the petrochemical industry, the company’s CEO and deputy petroleum minister, Hassan Abbaszadeh, said Sunday.

Abbaszadeh said the ruling, endorsed by all three branches of government, was the result of months of consensus-building and regulatory oversight by NPC, and is expected to reinforce the stability of the strategic sector, which plays a key role in Iran’s economy.

“The petrochemical industry today is not just a source of revenue or exports; it is a driver of economic development through the growth of upstream and downstream value chains and companies supplying equipment, goods, and engineering services,” Abbaszadeh said at a ceremony marking the Sha’baniyah days and the anniversary of the Islamic Revolution.

He highlighted the development of domestic capabilities in key cities such as Tabriz, Shiraz, and Arak, noting that local companies now produce advanced equipment essential for petrochemical operations—a stark contrast to the pre-revolution era.

Self-sufficiency in engineering and industrial services

Abbaszadeh stressed that Iranian firms have achieved significant independence in design, engineering, and consulting services. He noted that since the 1990s, strategic policies required Iranian participation alongside foreign contractors in major projects, enabling domestic companies to gain expertise to undertake both domestic and international engineering projects.

Advances in technical knowledge and catalysts

The CEO pointed to substantial progress in technical knowledge, particularly in catalyst production, where Iranian knowledge-based companies have reached a level that allows some exports, despite restrictions on technology transfer from advanced countries.

He added that domestic capabilities now extend across operations, maintenance, and technical services, allowing Iran to provide engineering and technical services abroad.

Crisis management and operational resilience

Abbaszadeh highlighted that the petrochemical sector, now producing roughly 100 million tons annually, maintained stable production and exports even amid recent military threats. He noted that new operational guidelines tailored to emergency conditions have strengthened the industry’s crisis readiness.

Sovereign ruling resolves pricing disputes

One major achievement, Abbaszadeh said, was the resolution of disputes among petrochemical companies over pricing directives, which had previously led to administrative lawsuits and halted trading of some firms’ shares. By coordinating with government bodies and securing agreement across the sector, NPC facilitated a sovereign ruling ratified by the heads of all three branches.

“This is a demonstration of NPC’s role as a regulatory and developmental authority, ensuring governance, arbitration, and stable frameworks rather than functioning as a production entity,” Abbaszadeh said.

Expansion and investment outlook

The deputy oil minister described the current year as a “golden year” for petrochemical development, with approximately seven million tons of new capacity expected to come online. He said major projects—including power plants, storage units, and phases of petrochemical complexes in Bushehr, Damavand, and Asalouyeh—will be commissioned throughout the year.

The ruling and ongoing investments, officials say, are designed to solidify the sector’s sustainability while boosting domestic industrial capacity and supporting the broader national economy.

 


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