Iran needs $33bn investment for petrochemical projects

08 Jul '14

2 min read

An investment of US$ 33 billion is needed for financing the petrochemical projects that are currently under construction, a senior official of the National Petrochemical Company (NPC) has said, reports Tasnim News Agency.

Mohammad-Hassan Peyvandi, deputy head of NPC, said a total of 71 petrochemical projects are currently under construction in Iran, with an average work progress of 27 percent.

Once operational, these projects are estimated to raise Iran’s petrochemical output by 10 million tons and bring $26 million in foreign exchange for the country, he added.

Mr. Peyvandi also informed that 12 to 15 of the petrochemical projects that are currently under construction are likely to come on stream within the next four years.

Iran has the world’s largest natural gas reserves and the third-largest proven oil reserves. The country is now aiming to become the biggest petrochemical producer in the Middle East region, and it has significantly expanded the range and volume of its petrochemical production over the past few years.

Last month, Vice President Es'haq Jahangiri said the Government of Iran considers investment in the petrochemical sector a top priority and hence it would fully support both local and foreign investment in the sector.

Terming Iran as one of the world’s safest areas for petrochemical investment, the Vice President said the Government would provide incentives like land ownership/preparation, provision of facilities, tax exemptions, customs, insurance assistance, etc. for petrochemical firms investing in the country.

According to NPC, more than 40 million tons of petrochemical products were manufactured in the country during last calendar year, which ended on March 20, 2014.

During last calendar year, Iran exported petrochemical products worth $10.723 billion, registering a rise of 1 percent, compared to the $10.165 billion worth of petrochemical products exported during the previous calendar year, which ended on March 20, 2013.

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