 |
We may have to look
for a market in time, but what is important at the moment is that our
embarking on and establishing a project often means that we have already
got market demand for the resulting production increases. |
New Milestones
One of the most distinguished figures
attending the Iran Petrochemical Forum was Mohammad Hadi Rahbari, the Managing
Director of NPC International. Rahbari’s role was especially significant as he
also delivered a speech entitled "New Milestones", during which he outlined
the progress of NPC’s project financing methods from the 1990s through to the
present day and the future project finance schemes under consideration. This
information was of special importance for the foreign companies listening
carefully to see which way the Iranian market was looking. What follows is a
short interview with Rahbari at the conference.
Where do you expect near future investment for the South
Pars phases to come from? Europe or South East Asia?
Right now I am more optimistic about the
European side of things.
Do you see participation and the level of investment
increasing for the future phases of South Pars?
The level of investment is going to
witness further increases. Financing for Phases 9 and 10 are about to be
finalized. As for phases 15 and 16. I hope that they will be financed shortly
and I further hope to see all 16 phases financed by the end of the year.
Increases in investment will lead to increases in
production and since we do not have a ready market for it, where would you be
looking to market your products?
As soon as we launch a production
project the whole world will hear about it and those who are looking to
acquire that product will be approaching us for it. We do not accept that we
do not have a ready market at the moment. We may have to look for a market in
time, but what is important at the moment is that our embarking on and
establishing a project often means that we have already got market demand for
the resulting production increases.
Have you
made any plans in case there is a glut in the market because of over
production?
We can’t do anything about the surplus
production capacity in the world and there will certainly be an addition to
the capacity; but I believe if we strengthen our international presence then
we would inevitably end up in the major producers club and by taking into
account the timely implementation of production controls to respond to levels
of demand, we should not suffer any more than anyone else. If we can survive a
drop in demand by standing alongside the other major producers, then we are on
fairly firm footing.
Where are most of your products exported to at the moment?
As far as I know South East Asia, the
main markets are South East Asia, India, then Europe, Africa and Middle East
in that order. The largest share is 35% of the total and the lowest is 9%. 35%
goes to the Far East, apart from China that supplies its own market since it
has its own crackers.
Do you see Germany playing a greater part in Iran’s
petrochemical industry in the next five to ten years?
Most certainly, if they continue to be
as competitive as they have been so far.
So if Germany is going to be one of the main players, then
what about Japan?
It depends on how their financing is achieved. If they show
more initiative than other players then they stand a fair chance but again, it
goes back to the financing levels. Although Japan as is not currently in a
good position to provide larger investment figures, but take into account the
recent appreciation of the euro combined with the relationship or the trend in
the rate of parity between dollars and yen and the Japanese might actually
stand quite a good chance. |
