Iran Petchem Industry Ready for Foreign Investment

Marjan; Largest Methanol Unit

Marjan Petrochemical Company, with an annual production capacity of 1.65 million tons of ethanol, is among other projects in the second phase of Assaluyeh. It is currently in the stage of equipment installation. According to initial estimates, this project would cost 341 million Euros plus IRR 4,220 billion. With more than 54% progress, this project is among the leading ones in Phase 2 of Assaluyeh. Near Marjan Petrochemical Plant is located a project operated by Dipolymer Aryan. This facility which has the capacity of producing 1.65 million tons of methanol a year relies on German Lurgi technology. Forecast to become operational in late 2017 or early 2018, this facility is estimated to cost 220 million Euros plus IRR 2,000 billion.

Bushehr, Largest Project

Bushehr Petrochemical Plant is the largest petrochemical project currently under way in Iran. It comprises three phases. Phase 1 includes methanol and ethane recovery, Phase 2 involves ethylene, MEG and HDPE. Equipment installation is more than half complete in the second phase. According to the plant’s managers, the initial capital required for this project is 1.9 billion Euros plus IRR 2,500 million.

This sum is planned to be provided through finance (85%) and equity (15%). So far, 400 million Euros has been injected into this project. Persian Gulf, Ettehad, Kimia Gostar, Jam Armeh, Hormoz, Vaniran, Samand Tarrah, Lavan, Hangam and Damavand petrochemical plants are in the second phase of Assaluyeh. They are on average 10% complete and they desperately need foreign investment. They have been abandoned in recent years due to financial shortages.

Despite the start of construction operations for the projects in the second phase of Assaluyeh, they still need foreign loan and finance. Therefore, this division of Iran’s petrochemical projects could be considered as investment attractions.

Iran’s revenue from petrochemicals is estimated to double to $40 billion. Projects in the second phase of Assaluyeh will make great contribution.

(Source: Shana)

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