National Iranian Petrochemical Company (NIPC)

The petrochemical industry in Iran dates from the 1950s. In the late 1950s, the then Ministry of Economy established a chemical agency to promote the petrochemical industry in Iran. In 1958, a chemical fertilizer plant was constructed in Marvdasht in Fars Province, southern Iran. As the growth of the petrochemical industry required broader specialized activities and further coordination with the oil and gas industry, an organization was needed to be established to develop and govern the sector. That was why in 1963, National Petrochemical Company (NPC) was established under the authority of National Iranian Oil Company (NIOC). All activities related to the petrochemical industry were centralized under NPC.

The petrochemical industry, as one of the main sectors of the country’s industry, is a pioneer in creating value added from oil and gas resources. Leading non-oil exports, the industry plays a key role in Iran’s economic prosperity, sustainable development, localization of technology, development of downstream industries and job creation. The main advantage of this industry in Iran is the variety of feedstock resources, access to high seas and specialized manpower.

More than half a century has passed since the emergence of the petrochemical industry in Iran. It was in the late 50s that the chemical agency was established by the order of the then Ministry of Economy; in 1958, construction of Marvdasht Chemical Fertilizer Plant in Fars Province as the first unit of Iran’s petrochemical industry began. Years later, with the expansion and development of units, the plant was renamed to Shiraz Petrochemical Plant and became the first petrochemical production unit in the history of this industry in the country. Since the growth of this industry required more specialized activities in line with the growth of the oil and gas industry, the establishment of an organization to develop and steer this fledgling industry became necessary more than ever. That was why in 1963, National Petrochemical Company (NPC) was established under the authority of National Iranian Oil Company (NIOC). All activities related to the petrochemical industry were centralized under NPC.

The process of beginning, development and evolution of the petrochemical industry in Iran is historically divided into several specific stages:

Birth of the petrochemical industry and initial emergence 1963-1979

From the establishment of Marvdasht Chemical Fertilizer Plant in 1958 until the victory of the Islamic Revolution in 1979, the development of this industry was carried out in the form of three development plans (1964-1977). One of the main objectives of these three plans was to meet the domestic needs for chemical fertilizers and some basic chemical and petrochemical items. Construction of Razi Petrochemical Complex (Shahpour), Abadan, Pazargad, Ahvaz Carbon (Iran), Kharg, Farabi (Iran Nippon) and Shiraz Petrochemical Development Projects and implementation of the major part of Bandar Emam Petrochemical Plant (Iran-Japan) are the result of this era. In 1977, NPC’s output reached roughly 3 million tons of intermediate and final products.

From stagnation to re-emergence of petrochemical industry 1980-1997

The outbreak of the imposed war shortly after the victory of the Islamic Revolution forced reduction and cessation of production and damage to the petrochemical units located in the war zones, southern Iran. But during the same years, despite the difficult conditions caused by the military conflict and the economic siege of the country, some semi-finished projects were completed, including the development project of Shiraz Petrochemical Plant by making maximum use of domestic resources.

The attractiveness and profits of the petrochemical industry in the growth and development of the country quickly made this fledgling industry a priority in development schemes.