Iran introduces 18 petrochemical projects to Chinese financers

Iran has introduced 18 petrochemical projects to be financed by Chinese companies, Marzieh Shahedaee, director of projects at the National Petrochemical Company (NPC) of Iran, said.

Lines of credit (LCs) for four projects, namely Sabalan, Lordegan, Bushehr, and Masjed Soleiman, have been opened and the rest are being followed up, Shana news agency quoted Shahedaee as saying on November 14.

She referred to Andimeshk, Sadaf, Ilam, Fasa, Jahrom, Darab, Miandoab, Golestan, Ardebil, and Zanjan as the projects which have been introduced to the National Development Fund to be financed.

The NDF has allocated $1 billion to four petrochemical projects, she noted.

China has so far provided finance for six projects which will add 10.2 million tons to Iran’s petrochemical sales, she said, adding that 2.5 billion euros in Chinese LCs have been opened.

Hamidreza Rostami, the planning and management head of NPC, said in October that 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 (ended on March 20, 2015), with over 10 percent rise from 40.5 million tons in its preceding year. 

Iran also exported 14.109 million tons of petrochemicals, valued at $8.205 billion in the first seven months of the current Iranian fiscal year, which started on March 21. Despite a 36.36% uptick in volume of petrochemical exports, revenues rose by just 0.01% compared to the same period last year, according to the Iran Customs Administration's report released on November 10.

Some $30 billion of investment opportunities have been identified in Iran’s petrochemical sector, which will be certainly welcomed by European and Asian investors if the sanctions against the country are lifted, National Iranian Petrochemical Company’s Managing Director Abbas She’ri Moqaddam said in April.