The
initiative, supported by recent directives from Supreme Leader Ayatollah Ali
Khamenei, allows major energy-consuming industries and petrochemical holdings
to directly invest in developing gas fields. This strategic shift aims to
ensure a stable supply of natural gas, a vital component for the petrochemical
sector, which has been hampered by growing domestic consumption and limitations
on developing new fields.
For years,
petrochemical companies have sought permission to invest upstream to guarantee
their gas feedstock, facing significant delays in obtaining the necessary
permits. A prominent private sector figure, Ahmad Mahdavi-Abhari, Secretary
General of the Petrochemical Industry Employers' Association, highlighted that
initial requests for investment authorization, first presented to the Supreme
Leader three years ago and again last year, were met with prolonged
administrative processes.
However,
according to the report, the current administration, taking office in August
2024, has prioritized this issue. Mohsen Paknejad, the Petroleum Minister,
announced in May 2025 that a dedicated team within the ministry has been
established to streamline the contracting and approval process, reducing the
typical multi-year timelines to approximately six months.
"This
marks the beginning of a new era of partnership," Mahdavi stated in an
interview, emphasizing that the petrochemical industry is now acting as an
investor to solve the energy imbalance, not just a downstream consumer. He
praised the Ministry of Petroleum's "unprecedented cooperation with the
private sector," which has untangled a knot that had held back upstream
investments for years.
The new
approach is viewed as a win-win scenario, where petrochemical companies secure
their own feedstock, contributing to national economic goals and alleviating
the burden of upstream investment from the government. The recent signing of
initial development agreements by Baxtar and Petro-Farhang holdings is seen as
a preliminary model for broader industry participation.
Industry
officials believe this move will not only alleviate the energy deficit and
boost gas production, thereby stabilizing the national grid, but also enhance
petrochemical output and export revenues. Furthermore, it is expected to foster
domestic technical knowledge transfer, create jobs, and stimulate local
contracting chains, moving the country away from a cycle of
"deficit-restriction-reduced production" towards energy
self-sufficiency.