Foreign Investors Show Growing Interest in Iran’s Petrochem

A03786495.jpgTEHRAN (FNA)- The total foreign investment in the National Petrochemical Company of Iran (NPC) in the previous three years has touched a record US$4.5 bln, a senior oil ministry official said.

NPC Managing Director Gholam Hossein Nejabat said that the Iranian involvement is based on the 50-50 deals in which half of the total shares are owned by NPC and the reaming are jointly owned by the foreign companies from Philippines, Indonesia, Oman, Singapore, India, Venezuela and the United Arab Emirates.

“The NPC has invested $125 million to earn 40 of the stakes in a Philippine-based petrochemical unit named RELIANCE NPC,” he said, adding, “The company has also participated in some other joint investment plans with countries like Indonesia, Oman, Singapore, India, Venezuela and the United Arab Emirates.”

As of now, 40 plus petrochemical projects – 8 in Mahshahr Special Economic Zone, 13 projects in Pars Special Economic Zone (Assaluyeh) and 20 plus projects in other parts – are in progress across Iran and are slated to be operational in the coming years.

Nejabat referred to Laleh Petrochemical Company’s annual production of 300,000 tons of heavy polyethylene and said, “The unit was constructed with $300 million joint venture by the NPC, Polymer Pushine Company and Germany’s SABIK Company.”

“The NPC, Sweden’s Comator, Germany’s Hansa Chemistry, and Iran Petrochemical Commercial Company (IPCC) have invested about $270 million in the Karoon Petrochemical unit’s first phase which is about to become operational. Other $350 million have been also spent on the unit’s second phase for which physical progress has reached over 50 percent,” he stated.

“The NPC and South Africa’s Sasol Company have invested $1.2 billion in Aria Sasol Company in order to produce 1 million tons of ethylene yearly. The unit will be inaugurated in the near future,” the deputy minister for petrochemical affairs added.

“Mehr Petrochemical Complex is among the other joint investments of NPC and foreign companies. The Alliance Petrochemical consortium, including Japan’s Itochu Company, Thailand’s SCG chemical and PTT companies, owns 60 percent of the complex’s share,” he said.

Nejabat also noted that the NPC has signed the contract of partnership with PURSI Company, Indonesia’s fertilizer producer.

“The NPC, the IPCC and Oman Oil Company have signed a contract to establish a joint company named Hormoz Company and in the near future a tender will be held in order to introduce the appropriate contractor,” he concluded.

As one of the major goals of the 2010-2015 five year developmental plan, Iran aims to produce 7.5 mln tons of methanol worth about US$1 bln.

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