The National Petrochemical Company (NPC) (Persian: شرکت ملی صنایع پتروشیمی, Shirkat-e Mili-ye Sânai'-ye Petrushimiy), a subsidiary to the Iranian Petroleum Ministry, is owned by the government of the Islamic Republic of Iran. It is responsible for the development and operation of the country's petrochemical sector. Founded in 1964, NPC began its activities by operating a small fertilizer plant in Shiraz.

Two special economic zones on the northern coast of the Persian Gulf have been developed to be home to the NPC's new project. These two zones enjoy a good access to feedstock, infrastructural facilities, local and international markets and skilled manpower. Despite pressure being exerted on the Islamic Republic over its nuclear program, Tehran expects to see a surge in petrochemical exports from $5.5 billion in 2007 to a total of nearly $9 billion in 2008.^{[citation needed]} The Fourth Five-Year Plan (2005–10) calls for a fourfold expansion of petrochemical output, to 56 million tons per year.^[1]

Iran petrochemical industry dates back to 1963. The first petrochemical complex to produce fertilizer kicked off then. It was founded by Bagher Mostofi باقر مستوفی under instructions of Shah.^[2][3][4]

Prior to the Iranian revolution, the first major petrochemical operation in Iran was the Shiraz Petrochemical Complex which by 1979 would have had facilities that would have increased annual production capacity of urea by 500,000 tons, nitric acid by 200,000 tons and ammonia nitrate by 250,000 tons, while the largest petrochemical plant in Iran prior to the revolution was the Abadan Petrochemical Plant which by 1976 produced in excess of 100,000 tons of PVC, 12,000 tons of dodecylbenzene and 24,000 tons of sodium hydroxide.^[5][6] Iran had surpassed a production of 5 million tons of hydrocarbon energy, worth billions to the Iranian economy and employing tens of thousands of domestic and foreign workers.^[7] The Iranian government in 1977 estimated that by 1985 Iran would supply 10% of the entire world's petrochemical production.^[8]

Other large ventures planned prior to the revolution included a second trans Iranian-Soviet pipeline for natural gas named Igat-2 valued at 2 billion, an addition of a methanol production facility at the Kharg Petrochemical Plant (a joint venture with Amoco) known for producing over 250,000 tons of sulfur a year and the Iran Carbon Company (a joint venture with the Cabot Corporation) the largest black carbon and rubber producer in the Middle East.^{[9][10][11][12]}

The largest petrochemical and fertilizer plant in the world, a joint venture between the government of Iran and Japanese conglomerate Mitsui was to be constructed in the city of Bandar e-Shahpur, alongside the Persian Gulf. By 1979 the complex was half completed and was slated at a cost of US$3.2 billion (1979 dollars).^[13][14] The plant manager was to be M. Arvin who formerly managed the Shiraz and Abadan plants.^[15]

Due to getting involved in Iran–Iraq War, Iran oil industry development experienced the lowest growth rate from 1979 till 1989. In 1989 the country petrochemical products reached 2.4 million tons a year.

Since 1989 till 1999 petrochemical industry started to reconstruct. Isfahan, Arak, Khorasan, Orumiyeh and Tabriz Petrochemical complexes were constructed and Bandar Imam Petrochemical Complex was also developed.

The fourth period (2006–2011) – called stabilizing and sudden growth period – started in 1999 and has been continued till now. The number of petrochemical facilities rose to 39 in the post-Islamic Revolution era from only 6 in 1978, raising the output to 15.8 million tons in 2005 and more than 40 million tons in 2010.^[16]

In 2016, Iran's petrochemical industry experienced at least 15 accidents, possibly linked to cyber-attacks.^[17]

NPC's major activities are production, sale, distribution and export of chemicals and petrochemicals.

As at end of 2009, Iran's total annual petrochemical production capacity stood at 34 million tonnes.^[18] In 2010, Iran produced 26% of the total petrochemical output in the Middle East, second behind Saudi Arabia.^[19] The petrochemical industry accounts for 2 percent of the GDP, 44 percent of the non-oil exports and 55 percent of the industrial exports. In 2011, Iran earned 12 billion dollars from exporting petrochemical products to over 60 countries.^[20]

In 1989 the Planning and Development Department of NPC initiated, with the help of other related institutions and individuals, a long-term study on the "Strategic Plan for the Development of the Petrochemical Industry in Iran". Considering national and international factors such as the local market, export potentials, feedstock availability and profitability, a 25-year development plan, consisting of five development phases, was drawn up.^[23]

Business Monitor International (BMI) estimates that in 2009, Iranian petrochemicals exports will be around $7.9 billion, 32 percent above the previous year. Iran hopes to implement 47 new petrochemical projects by the end of the Fifth Five-Year Economic Development Plan in 2015 at a cost of $25 billion, adding a total of 43 million tons per annum (tpa) to the capacity.^[24][25] Iran will represent at least 5.3 percent of global petrochemical output and 36 percent of Middle Eastern production once those projects become online. The Ministry of Petroleum of Iran has set targets for annual production of 11.5 million tpa of ethylene, 11.5 million tpa of polymer and 3.4 million tpa of urea, with a target of becoming the world's leading producer of methanol with 7.5 million tpa of methanol capacity, which represents 18 percent of global capacity.^[26]

Iran National Petrochemical Company's output capacity will increase to over 100 million tpa by 2015 from an estimated 50 million tpa in 2010 thus becoming the world' second largest chemical producer globally after Dow Chemical with Iran housing some of the world's largest chemical complexes.^[27][28][29] 50 billion dollars will be invested during the fifth five-year development plan (2011–2016) to create this new capacity.^[20]

Projects due to be completed by 2016, such as the 14th olefins complex in Firouzabad with 1mn tpa ethylene capacity, the 15th olefins complex in Genaveh with 500,000tpa of ethylene and the 17th olefins complex in Ilam with 607,000tpa of ethylene, were significantly delayed under the sanctions regime. Meanwhile, the 12th olefins complex has been postponed and will be configured. However, the 16th olefins and methanol complex is already being constructed by Bushehr Petrochemical Company as part of phase two of the Pars SEZ at Assaluyeh. Completion of the plants, with capacity for 1mn tpa ethylene and 1.65mn tpa methanol, is due in 2014, although past experience has shown that delays could push commercial production back.^[30]

Local and foreign, is essential for sustained growth of the petrochemical industry in Iran. Policies for encouragement of private sector participation include allocating NPC shares to private sector both inside and outside of Iran; supporting local private sector investments in the petrochemical industry; supporting local engineering firms and production companies; allocating parts of engineering, and most of construction jobs, to the local private sector; and allowing the private sector to invest in new projects in the petrochemical industry.^[23]

NPC plans to privatize 17 subsidiary companies by the end of 2007.^[35] All shares of domestic petrochemical firms will be offered to the public in the frame of a holding company by the end of 2010.^[36]

As at 2012, Parsian is the largest listed holding company of petrochemicals in Iran and controls the world's largest producer of methanol (Zagros Petrochemical) and the world's largest producer of urea (Pardis Petrochemical).^[40]

In accordance with the government policy on rapid development of the petrochemical industry, many steps have been taken to make foreign investments in this industry more attractive for our future joint-venture partners. Such actions include creation of special industrial economic zones, revision of legal to taxes and tariffs, guarantee of capital and profit transfer, and providing the required utilities and the needed infrastructure for industrial and commercial operations. The availability of a highly trained but inexpensive work-force, cheap feedstocks and a sizable internal market, will also work in Iran's favor, to attract foreign investment.^[23] In 2008, Iran agreed to invest $125 million in the Philippines’ petrochemical market.^[65][66]

Iran has proposed the creation of a Petrochemical Exporting Countries Forum (PECF) which aims at financial and technological cooperation among members, as well as product pricing and policy making in production issues.^{[citation needed]}

• List of Iranian Research Centers (Polymers)
• The nationalization of the Iran oil industry movement