History of the petrochemical industry of Iran
History of the petrochemical industry of Iran
The idea of creating the petrochemical industry in Iran is more than 50 years old. In the texts and laws of the 1950s, provisions, and terms such as “Chemical industries derived from oil” or “chemicals derived from oil and natural gas” either “gas derivatives” and “chemical fertilizers” were adopted Without the word “petrochemical” being used.
The first article of association of Iran National Oil Company approved on November 26, 1952, mentioned establishing a company named National Iran Oil Company for exploration, extraction, and exploitation such as refining, transportation, export, and distribution of oil and its derivatives.
In the bill of the second construction program, credits for the formation of chemical fertilizer factories were predicted and the first step in the establishment of petroleum chemical industries in Khuzestan was taken in June 1958.
In the report of June 1960 of the Khuzestan Development Program, the title “Petrochemicals” was mentioned for the first time.
At the end of the 1950s, the Ministry of Industries and Mines paid attention to the construction of a chemical fertilizer plant from natural gas in Marvdasht, Fars. In 1958, the contract for the construction of the factory was signed and its implementation was entrusted to “Chemical Fertilizer Company“. This factory was put into operation in 1963.
History of the petrochemical industry of Iran
In 1964, the law on the formation of the National Petrochemical Industries Company under the cover of the National Iranian Oil Company and the concentration of all activities related to the creation and development of petrochemical industries in this company was approved. In 1965, the Petrochemical Industries Development Law was also ratified.
The petrochemical industry in Iran has about 9% of the world’s oil reserves and 16% of the world’s gas reserves, due to the use of the country’s relative advantages and the creation of added value, has been the focus of the country’s policymakers and planners since the beginning. Although the development of this industry requires huge capital and educated manpower, its importance in the growth of the national economy has paved the way for the expansion of this industry.
The process of development and evolution of the petrochemical industry in Iran includes six specific stages:
- Genesis (1963)
- Initial expansion (1964 to 1978)
- Recession (1978 to 1988)
- Revival and reconstruction (1989 to 1999)
- Mutation, stabilization, and development (1999 to 2008)
- Privatization and transformation into goveance and regulatory organization (2009-till now)
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History of the petrochemical industry of Iran