IPF: $12bn in Foreign Investment
The International Petrochemical Forum which used to be organized annually
and is now being held biennially is in fact an example of energy diplomacy.
In the contemporary world and even by the end of the 21st century the
driving force of engines either in the sky, on the surface or at sea would
still be fossil fuel so much so that other sources of energy would have a
minor share in this regard.
four stroke and diesel engines had not been invented on the basis of
combustion and fossil fuel in cylinders and were it not increasing human
avarice for welfare and luxury in the second half of the 20th century,
perhaps the clean energy and the mother of all energies, i.e. solar energy
could have played a larger and more significant role in global industry and
economy; technologies would have not been developed on the basis of four
stroke engine cycle or gas and steam turbine, the nature would have been
protected better and perhaps human beings lived longer.
The International Petrochemical Forum was initiated at a point where Iran's
petrochemical industry reached its global status and realized that it is
part of international interaction in the economic geography and industry.
The National Petrochemical Company was operating under a very tight schedule
and feeding from the feedstock obtained from oil rich regions and South Pars
within the second and third five-year development plans and in the two
economic-petrochemical zones of Mahshahr and Pars Energy in Assalouyeh.
Today, production of petrochemical substances at the operational sites has
reached the edge of 50 million tons. At this juncture the NPC needed to
establish diplomacy in the energy sector and engage in interaction with men
of technical knowledge on the one hand and banks providing financial funds
on the other hand.
The world industrial countries, either in the East or in the West have
surplus resources in their possession due to economic and industrial growth.
In this part of the world however the developing countries are in need of
gaining access to such resources in order to attain their development
targets. Therefore, by granting loans with low interest rates to the
developing countries they put their resources in the circle of international
economy. They would of course pay the loans provided that at least a
remarkable amount, for example 40 percent, of the required equipment would
be maintained from factories of the countries which grant loans. In fact the
main interest would come from that source and not from the loan interest;
that is to say the factories would run and generate employment. Now whether
we are capable of domestically manufacturing or whether the owner of
technology insists on certain limits as the border and secret of its
technical knowhow these loans would not be granted in the absence of
knowledge and trust in the capability of the loan receiving country to repay
the money through production or export and generation of hard currency.
This subject is one of the main reasons for organizing the International
Petrochemical Forum. The first forum was held under the management of Dr.
Mansour Moazami and the others up to the 8th IPF were convened under my own
The role of the International Petrochemical Forum was so effective that the
National Petrochemical Company undertook about $12bn in financing of the
most projects in the absence of guarantees by any other institute such as
the Ministry of Petroleum, the Central Bank or the Ministry of Finance and
Economy and only by reliance on production capacity and generation of hard