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March 2003 / No. 22


Petrochemicals

Bringing Together the Petchem World

"Presentation of domestic capabilities in the fields of engineering as well as domestic manufacture and installation during these forums has been effective in expanding engineering services."

The Fifth Iran Petrochemical Forum (IPF5) set to be held May 2003 draws nearer. This year will be the fifth consecutive year in which Iran’s National Petrochemical Company (NPC) holds this international forum which brings the world of petrochemicals together. Mohammadhassan Peyvandi, Director of Planning and Development of NPC and the forum’s Chairman highlighted what we should be looking forward to in IPF5 through the interview that follows.

What is the main focus of IPF5 and why?

The main topics that have been selected –with due attention– for this international petrochemical conference are current issues facing the petrochemical industries of the world, Iran and its region. The most important topics regarding these industries both at international and regional levels include challenges they face in regard to investment, taking advantage of natural gas resources, regional cooperation, future of aromatic products, ways of compensating propylene shortage and new applications of methanol. Moreover, petrochemical industries are trying to find answers for such problems as the decrease in propylene production due to replacement of naphtha feed with ethane, taking more advantage of recycling technologies and the effect of the e-commerce of petrochemical products on market growth and investments.

What is the NPC’s main objective of holding these annual conferences?

Basically, holding international conferences follows two general goals, which are:

A) Providing an opportunity for exchange of expert views on the latest achievements and problem solving; and

B) Finding grounds for cooperation to enter international markets and to attract investments.

Conferences held on the international or Iran’s petrochemical industries are no exception. Due to the profound gap existing between Iran’s petrochemical industry and those of advanced countries and the role of foreign investment and access to global markets in prosperity, Iran’s petrochemical industry is in dire need of holding international forums. It should be added that this measure has been in vogue in our country for four years now as part of the NPC’s activities to facilitate exchange of views with foreign technicians and attract foreign investment. I must add that due to the expansion of foreign contacts, foreign direct investment in the petrochemical industry has entered an executive phase, an example of which is investment in an isocyanate project at the special economic-petrochemical zone with the participation of two companies from Sweden and Germany. Directors of these companies will address the forum in May 2003.

To what extent have the objectives of the previous forums held by NPC been realized?

Forums held by the NPC have been quite successful from an international point of view, as our main areas of concern such as the market, commissioning underway projects and product specifications were addressed. These forums have played an important part in expanding the market because, at present, petrochemical industries are faced with a high demand for their products.

Presentation of domestic capabilities in the fields of engineering as well as domestic manufacture and installation during these forums has been effective in expanding engineering services. It should be noted that the development that has taken place in the field of engineering is beyond compare with countries similar to Iran.

Undoubtedly, the forums have not only led to the better introduction of Iran’s petrochemical industry and its downstream industries to the global market, but has also boosted the role of Tehran as an important regional center for making decisions regarding the future of petrochemical industries.

What is the role of IPF5 in determining the status of the industry in Iran and the world and its impact on the attraction of foreign investment?

With regard to the market issues, I must say that the petrochemical industry is currently faced with purchase requests for its products. This is not only true with available products, but also for those products whose production plans are currently underway and have not become operational yet. Therefore, we believe that Iran’s marketing efforts, including the holding of international forums, have been effective in expanding our share of the global petrochemical market. These activities have prompted investors to trust the NPC’s financial capabilities, which has resulted in the insurance coverage and financing of such projects.

In recent years, petrochemical forums have been held in which representatives from important countries have participated. What is the significance of such forums from an international standpoint and how far do they go in turning Iran into an important decision-making center for the future of the world’s petrochemical industry and what are NPC’s expectations in this regard?

As for introducing other the capabilities of petrochemical industries, previous forums have played their role appropriately through presenting papers. In most forums we have been provided with an opportunity for presenting our capabilities in engineering as well as domestic manufacture and installation of project structures. The participants have noticed this rapid improvement in capabilities, which can be ascertained by foreign companies delegating more responsibility to Iranian sides. It should be noted that the NPC has taken remarkable steps for the development of processes and related technologies.

What is the effect of IPF on increasing cooperation among production companies, contractors and consumers of petrochemical products?

The outcome of exchanging views among specialists and experts in this industry can be witnessed in the process of production and trade. Producers, contractors and consumers enter a wider space for expansion of international cooperation by being aware of challenges facing this industry as well as mechanisms adopted to confront them.

What is on agenda for IPF? Which companies and foreign personalities have been invited to take part in this conference?

In addition to Iran’s Minister of Oil, Bijan Zangeneh, who traditionally inaugurates the conference every year, other Iranian and non-Iranian dignitaries have been invited to attend the conference scheduled for May 2003. For example, Deputy Minister of Oil and Managing Director of NPC and former Dean of Tehran University and Sharif University of Technology and present lecturer of American and Canadian universities, Mohammadreza Nematzadeh, and the Deputy Foreign Minister of Economic Affairs, Mohammadhussein Adeli, will address the forum. Among foreign personalities I can mention Mr. Al-Mazi, Managing Director of Saudi Arabian Petrochemical Company, which plays a significant role in the region’s petrochemical industry, who will also deliver a speech during the forum. I should note that the scientific committee of the forum, which is run by me and supervised at a higher level by the Deputy Minister of Oil for Petrochemical Affairs, has only accepted those lecturers who in addition to high scientific and managerial qualifications have presented up-to-date papers. We always observe this principle.

 

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