The Forum for Partners in Iran's Marketplace

IPF Exclusive, July 2013

Tenth Iran Petrochemical Forum | Summit 2013

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.

Mohammad-Hassan Peyvandi

If 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 management.

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 currency.


Subscribe to

  July 2013
No. 68