Iran Introduces €16b of Petrochemical Projects to China

Iran has introduced 16 billion euros worth of petrochemical projects to Chinese investors, said Amir Hossein Fallah, director for investment at National Petrochemical Company of Iran.

To date, 12 billion euros worth of the projects have been introduced to the central bank of Iran for receiving the finance and letters of credit have been opened for five of the projects, Shana news agency quoted Fallah as saying on January 1.

“Generally, the country’s banking system is facing with a shortage of capital. But, fortunately, the money and credit council has excluded the Chinese finance from regulations and bylaws.”

Based on the law, NPC cannot guarantee investment or finance by foreign private sector companies. So, we should pave the way and create infrastructures for attracting foreign investment and technology, Fallah explained.

NPC’s director Abbas She’ri Moqaddam said on December 29 that German companies have offered investment bids equalling €12 billion for Iran’s petrochemical sector.

In recent years, foreign firms have been wary of participating in Iran’s petrochemical projects, he said. “Thanks to the developments in the international arena, we are witnessing the presence of foreign delegations in Iran aiming to invest in the country’s petrochemical projects,” he added.

Meanwhile, Iranian Oil Minister Bijan Namdar Zanganeh has said that lifting of the sanctions previously imposed on Iran will open up new horizons in the country’s petrochemical sector.

“We welcome cooperation with first-class companies in order to import technology.”

Iran’s petrochemical sector has set an annual output target of around 129 million tons by the end of the country’s sixth five-year development plan (2021).

The country produced 44.5 million tons of petrochemicals in the past Iranian calendar year (which ended on March 20, 2015), with an over 10% rise from 40.5 million tons in its preceding year.