The Forum for Partners in Iran's Marketplace
 
 
 
 
 
 
 
 
 
 
 
     

September 2004 / No. 31


Petrochemicals

Asians Join Iranís Petchem Investors

Negotiations are underway with Saudi Arabia, Thailand and Japan for the participation of their companies in Iran's petrochemical projects

Mohammad Reza Nematzadeh, Managing Director of NPC

Negotiations are underway with Saudi Arabia, Thailand and Japan for the participation of their companies in Iranís petrochemical projects. Companies from South Africa, Netherlands, Sweden and Germany have already invested in Iranís petrochemical projects with the foreign share from three such projects amounting to Ä700 million.

Speaking in this regard, Managing Director of the National Petrochemical Company (NPC), Mohammad Reza

Nematzadeh, said that based on NPC policies all petrochemical projects have been implemented through foreign and or domestic partnership as of last year.

Iranís current share of global petrochemical production is about 0.8%, and will increase to 2.5% during the next five years. Based on current projections, the value of Iranís petrochemical production will reach $20 billion within 10 years.

Studies for marketing the products of these projects have started and the countries which have a demand for petrochemicals as well as the extent of their demand are all under consideration.

Nematzadeh further noted that about $12 billion has been invested in Iranís petrochemical projects since 1997, all of which will be made operational either during the current year or the next.

ďPetrochemical production will increase from 8.2 million tons in 1996 to 19 million tons by the year-end. Also, petrochemical exports stood at about $507 million in 1996, but will increase to $1.8-2 billion by the end of the current Iranian year (started March 20, 2004). This amount will increase to $2.5 billion by next year,Ē he said.

Total petrochemical sales stood at about $2.4 billion last year. It is believed that this amount will increase to $3 billion this year and hit $4.5 billion next year.

Nematzadeh said Iran has started studying regional markets and investments in three geographical zones. ďOman, the United Arab Emirates, China, India, and Turkey are target goals for Iranís petrochemical industry and we are also negotiating partnership programs with creditable European countries,Ē he noted.

NPC has also planned research cooperation with companies from Denmark, Italy, the Netherlands, and Germany. Such cooperation will delineate a bright prospect for Iranís petrochemical industry.

 

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  Sep.  2004 / No. 31