The Forum for Partners in Iran's Marketplace

IPF Exclusive, July 2013

IPFs at a Glance | 1999-2005

Maximizing Value

An Era of Belt-tightening

Research & Development

Financing for the Future

To achieve its aspired share of the product markets Iran will clearly need to offer attractive feedstock prices as well as a low local cost base. Iran may also have to consider the optimum phase of projects by recognizing the pattern of developments.

Jeroen Van der Veer, Group Managing Director, Shell Group of Companies, Royal Dutch Shell

The second half of last century saw the migration of the basic petrochemicals industry to the Middle East because of feedstock availability and competitive costs.

Mohammed H. Al-Mady,
Vice Chairman & CEO, SABIC

"There was not too much emphasis on R&D. Perhaps it would be nice if next year we could have contributions from Iranian research institutes and universities because no doubt Iran is a little bit behind in this area."

Haldor Topsoe,
Chairman, Haldor Topsoe A/S

Iran has sometimes been perceived as a crude oil based economy and its economic fortunes have shown a marked correlation to the price of oil. However steps have been taken to reduce this dependence on oil and in this respect NPC has been one of the key companies in this diversification strategy, raising over $5 billion for new petrochemical projects since the 1990s.

David Hodgkinson,
Deputy Chairman, HSBC, UK

Greatly involved

Optimum Mix of Expertise

A Fundamental &
Lasting Recovery

A Glimpse at the Future

We are greatly active in the petrochemical and natural gas industries in Iran. We are involved in a project at Maroum, two big projects at Bandar Imam and one at Assalouyeh port. We have also been awarded a launch and separation plant for Mobin petrochemicals. So we are involved is quite a wide area of the industry in Iran.

Markus Raab, Managing Director, Linde Engineering Division in Munich, Linde AG

Close cooperation with local petrochemical companies, as well as the different contributors to those projects, will be the best way to maximize efficiency, through an optimum mix of capabilities and expertise.

Jean Bernard Lartigue, President Petrochemicals, ATOFINA, Total

Despite staggering blows, the global economy held together and growth resumed. Consequently, we have entered a welcomed period of excess capacity absorption, which is translating into supply tightness, producing reinvestment quality earnings.

Gary Adams,
President, CMAI, U.S.A.

At each stage in the creation of this industry, emerging challenges were met with innovation. Unique technical, manufacturing, and commercial solutions were developed. Local business has grown to regional and today global scope.

Volker President & CEO, Basell

An Excellent Production Basis in Iran

Financing in Advance

Adrenaline High

Amplification of Cooperation

Iran, due to its vast natural gas deposits on the Persian Gulf, is in the fortunate position to have a reliable and at the same time low-cost raw material basis at its disposal to produce a vast variety of base chemicals.

Klaus Schneiders, Member of the Executive Board, Uhde GmbH

We have arranged for NPC a financing facility which enables them to source their goods in a number of countries. On that basis, we can provide favorable financing for Iran's new projects.

Hans Herold, Managing Director, Structured Export Finance, Deutsche Bank

IPF provided a good occasion to inform international companies about the present state of the Iranian petrochemical industry and the government's intentions.

Tyark Allers, Managing Director of Thyssen Krupp Engineering AG.

"We are implementing a water supply project and also the Third Ethylene Plant for Bandar Imam Petrochemical Complex. We are looking forward to intensifying our business here with Iran and NPC."

Walter Sumereder,
Senior Vice President,
Va Tech Wabag GmbH

Globally Important

GTL technology

Competitive Advantage

Good Enough

I've found out that this event is becoming more and more attractive to the business community the world over, including to the possible shareholders and the partners in the technology. As for our company, it is a leading one in polypropylene and few other petrochemicals and has a large business in gas and energy.

Roberto Pratesi, Vice Chairman and Managing Director, Tecnimont

Natural gas is fast becoming the world's more desirable source of future hydrocarbons. We believe the establishment of a GTL industry would align perfectly with Iran's stated objectives of developing domestic and export markets, while also preserving the value of its reserves for future generations.

Pat Davies,
Executive Director, Sasol

To earn acceptable financial returns, investment projects are increasingly required to meet or even surpass existing leading global standards. The criteria are multi- dimensional, covering all aspects of the investment from - feedstock through technology and from operational excellence to marketing and financing.

Mike Buzzacott,
Group Vice President, BP Chemicals

We are presently cooperating with the NPC on two projects, one of which is in Assalouyeh and the other at Bandar Imam. It is very difficult to make a proposal on the improvement of the forum since it is well organized.

 Andreas Lusch,
Managing Director,

Lurgi Oil, Gas & Chemicals

Most Important Thing

Questions & Answers

Bright Classmates

Willingness in Practice

" brings together at a meeting place all those parties who are interested in being involved in the Iranian petrochemical industry. I think that's the most important thing."

Ottmar Weiss-Schaber, Managing Director,
Selas-Linde GmbH

"There is not enough time for Q&A sessions. The interaction is missing between the audience and the speaker. There is hardly any question coming in because there is always a rush. So there should be fewer speakers and more time for Q&A."

Zerex F. Lashkari, President, YezPer Consultants

There is no doubt on the expertise available in the Iranian petrochemical industry. When I went to college in Germany in mid 1960s, some of my bright classmates were Iranians.

Harald Gresch,
Executive Manager, FERROSTAAL

Having a good feedstock is an advantage, but it is not enough to form a partnership. There are a number of other conditions that have to be met. There must be a practical willingness."

Dr. Marcello Colitti,
President, Italian Standards Organization (UNI)

Naphtha Vs. Gas

New Investment Basis

Reducing Capital Investment

Additional Benefits

Naphtha-based petrochemical producers are finding it impossible to compete against the "feedstock advantage". To bridge the gap, producers will be increasingly obliged to convert steam cracking by-products into premium products.

Marcello Piccioti,
Vice President, Technip - Coflexip

The drivers for new investments in the Middle East are based on access to competitively priced feedstocks and we will review the competitive advantage of olefins and aromatics in the Middle East against other regional producers. This helps to establish the basis for new investments. 

Arvind K. Aggarwal, Director Propriertary Studies Europe, Middle East & Africa, CMAI

In today's petrochemicals industry, most of the industrial gases are used to manufacture intermediates. The valorization of natural gas resources and the emergence of very large units for methanol, DME and GTL lead to using large quantities of oxygen to generate syngas to reduce capital investments.

Emmanuel Schmidt,
Vice President,
Petrochem & Chem Market,
Air Liquid

Due  to the natural resources in the middle East the down- stream integration from petrol to PET will provide an additional benefit for the production chain. Reduction in conversion costs, improvements in product quality and enhancement of down - stream process efficiency are at the heart of the latest technological developments.

Michael G. Martl, 
Member of the Board, Zimmer AG

Narrow and Wide

Global Players Here

So Far, So Good

Cost & Market Leaders

Competition is here to stay. If you are producing a narrow range of products, your marketing area must be wide and if you are producing a wide range of products, your marketing area may be narrow.

Kent Abbas, Vice President, Polypropylene Business Unit, BOREALIS

"... is the best way to attract foreign investment. You can see from the participation of big global players that they take interest."

Andrew Pettman, Director, Europe & Middle East Olefin Studies, Chemical Market Associates, Inc.

I was last in Iran ten years ago. Being back here again, I found the people very friendly and very helpful to get on with. So far, my visit has been very good.

Ian Green, Vice President,
Simon Carves, England

"The Asian petrochemical industry is expected to grow at a very high rate in the next decade. Plants with available feedstocks will become cost leaders. The most important element of competitiveness will be cost of feedstock."

Fabbrizio Ds'Adda,
Chairman & CEO, EniChem

Specialized Workshops

Deeper Technical Approach

Seek the Limelight

Management Consultancy

"Organizers can start introducing more specialized sections such as workshops on technology, transfer of technical know-how, project financing, etc. This brings interaction into very specific possibilities to be developed in Iran."

Pierre Shammas, President,
APS Energy Group

"The forum could perhaps focus less on the general part, and more on other sections with a deeper approach to some technical issues to interest both the Iranian and international sides."

Stefan Maedje, Sales Manager, Sasol Germany GmbH

"There were many qualified speakers. Practical arrangements and the facilities were very good. I think organizers should probably give more advertisements abroad because not many people know about the IPF."

Gunnar Thoresson, Licensing Manager, Borealis

PMC is a relatively new concept for Iran, and how much Iranian projects might benefit from this approach is not recognized. The value of using a PMC contractor has been demonstrated on many petrochemical, oil and gas projects around the world.

Charles Sweeney,
Business Development Director Petrochemicals, Foster Wheeler Energy Limited

Enlarging EU
Export Opportunities

Flowing Smoothly

Info on Research

Wider Publicity

I think the enlargement of the EU will lead to Iran enjoying more benefits, because all the new member countries will enjoy the trade system like the other European countries and this will be give Iran a better opportunity to export to these new countries.

Cladinoro Calcina,
Managing Director,

S.I.C.I.F s.r.l., Italy

"I believe among the Mideast countries Iran has the leadership role. We are succeeding in more and more projects unlike the past. Contacts have become easier and more smooth since last year."

Jurgen Rabenseifner,
Sales Manager, LEWA Metering Pumps & Systems

"From the international side they could talk about some new technical developments, and from the Iranian side I would be interested to hear what kind of research is done by Iranian researchers."

Klaus Diblitz,
Vice President of Inorganic Specialty Chemicals, Sasol Germany GmbH

"With more publicity at the international level there will even be a larger attendance next year. There is a huge interest in investing in Iran and learning about its development."

Matt Paason,
Licensing Manager,
Stamicarbon B.V.

Technical Content Needed

Issuing Policies

Technical Innovation

Business as Usual

"This IPF included many policy-inclined speeches. While these are necessary at the beginning of the evolution of Iran's efforts, I think there needs to be some technical contents to interest the active producers."

Peter Aston,
Regional Manager, Procatalyse

"We are fortunate to associate ourselves with NPC. We are insuring their assets and also insuring the projects under construction in the free trade zones."

I. A. Sahhar,
Director of Construction & Engineering Division,
United Insurance Brokers Ltd.

DME (Dimethyl Ether) is now mainly used as propellant and its demand is about 150,000 MTPY all over the world. But DME could possibly bring a new technical innovation to the energy field, as fuel for power generation, for motor vehicles, for LPG alternative etc.

Toshiyuki Mii,Senior Manager, Business Planning & Exploring Department, Toyo Engineering Corporation, Japan

" was very fruitful for us specially since we signed a contract during the forum. So I am looking forward to 2002 to have even more contract signed during the forum."

Daniel Valot, Chairman & CEO, Technip

Market Targeting

Marketing Polymer Production

Promoting Iran-EU Petchem Ties

Right in Time

Current market growth has failed to meet projections, resulting in a short term supply glut. If our long-term predictions were correct, we will be supplied with answers on such questions as: when will we need the next  wave of investments and which markets should Iranian producers target?

Andrea V. Borruso,
Sr. Consultant, World Petrochemical Program, SRI Consulting

If Iran wants to be a player on the global market and the European market it should realize that its conditions should be favorable otherwise it makes no sense to try to get a seat at the European table.

Rutger Jan Zetteler,
Managing Director, Tolson Polymers, Netherlands

We have started cooperation with NPC through Roland Berger now, and we have tried to broaden this cooperation and help NPC, who is already a major player in the petrochemical arena, to be even stronger. This I think will be good for both parties. I am a great believer in the fact that Iran and Western Europe are bound to work together.

Jean-Claude Barbier,
Senior Advisor, Roland Berger Strategy Consultants, France

After a nearly ten year period of poor earnings, petrochemicals is on the way to recover a good appeal to the operators. However, the investment strategy to meet increasing product demand will have to be right in time to avoid a rapid come back to over capacity.

Oliver Appert,
President, IFP, France

Assessment time

Part of the World Team

Joint Venture with NPC

Petchem Proposals Underway

We don't know at all at the moment the amount of investment we are likely to make and I am here to take a look at what we are going to do about that. And we will find our way to decide later on since this is our company's  first participation at the forum.

Wilhelm J. Beckmann,President, Beckmann Chemikalien KG

I think NPC is working harder than ever and I definitely wish them every success.

Dr. Abby A. Alexander,
Commercial Vice President of the U.K.-based Stone & Webster Construction Limited

Based on the good experience of working in Iran, Chematur accepted and decided to form a Joint Venture for establishing a chemical complex in the economical free zone at Bandar Imam.

Leif Wilnier, Managing Director of Chematur Engineering Ab

Qatar has embarked on a very ambitious plan for monetizing its large gas resources through setting up projects to export produced gas via LNG and pipelines, to utilize it through gas to liquid (GTL) and developing the petrochemical sector.

Abdullah H. Salatt, Senior Advisor to the Ministry of Energy & Industry of Qatar


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  July 2013
No. 68