Major European chemical manufacturing companies including Germany’s BASF are ready to transfer technology and invest in Iran’s petrochemical industry, first deputy managing director of National Petrochemical Company (NPC) said.
Mohammad Hassan Peyvandi told participants at the Petchem Investment Panel of an international financial conference in Kish Island on Tuesday that a secured Iran tops foreign investors’ options in the volatile Middle East region.
“Oil price slump in world markets, rise of ethylene and propylene production in China and the US shale oil and gas boom are the biggest challenges the petrochemical industry is faced with in the world and Iran remains the only stable and safe Middle Eastern country which is still attractive for investors.”
Saying that Iran under sanctions had to reduce its petchem exports by 5 million tons a year during 2011-2013, he said plummeting crude oil prices have also slashed Iran’s hard currency revenues.
He said Iran has defined dozens of major projects to revamp its petrochemical industry and dramatically boost output.
Peyvandi introduced the Kaveh Methanol Project which is under construction under the license of a Swedish company as the world largest methanol complex and invited financiers to invest 4 billion dollars in the Damavand complex.
“Iran’s petrochemical production capacity stands at 60 million metric tons per year but the country produces 45mt/y which is because of feedstock shortages in petrochemical plants,” he added,“Plans are under way to add 60mt/y to Iran’s output which will bring Iran’s total petrochemical production capacity to 120mt/y by the end of the 6th Five-Year Development Plan (2016-2021),” said the official.