World's largest chemical producer plans to invest $6 billion into Iran

The world’s largest chemical company, Germany’s BASF, is ready to invest $6 billion in Iran’s petrochemical sector, said Hamid Reza Rostami, director for planning at Iran’s National Petrochemical Company (NPC).

“The foreign company has decided to make direct investment in Iran and also transfer technology and management, and secure guaranteed market. We welcome such opportunities,” Shana news agency quoted Rostami as saying on December 14.

Part of the investment will be related to steam crackers and olefins, while other parts are related to propylene, gas-to-polymers and methanol-to-olefins, he explained.

Kurt Bock, chairman of the board of executive directors of BASF, said, “German technology and quality of work are highly respected. So, we have good chances to reestablish links with Iran. Iran’s petrochemical industry is progressing. When Iran rejoins the global economy, it will affect the markets.”

Meanwhile, Amir Hossein Fallah, director for investment at NPC, said foreign companies can take advantage of investing $10 billion annually in Iran.

Currently, some 70 projects are being implemented and 36 new projects have been developed, he added.

Once the nuclear deal reached between Iran and world powers is implemented, the trade and petrochemical ties of Iran with other countries will be restored, he said.

Meanwhile, Marzieh Shahedaei, manager of projects at NPC, said more than 350 oil and gas, refining, and petrochemical projects, worth $70 billion, were implemented by domestic companies under the sanctions.

“Iran’s nominal petrochemical production capacity is around 60 million tons, but due to a shortage of feedstock, the output is about 44.5 million tons, of which 32.2 million tons is exportable,” she stated.

There are 67 semi-finished projects which require $40 billion to be completed, she noted.

Meanwhile, 36 new projects have been launched in petrochemical hubs, such as projects on the coast of the Sea of Oman, she said, adding that the projects require $32 billion and will add 64 million tons to the country’s petrochemical output.