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Iran's petrochemical sector to receive strong investment.
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Linde, Mitsui plan $4bn investment in Iran

IRAN, February 2, 2016

Germany-based Linde, a leading industrial gases company, and Japan’s Mitsui Chemicals plan to invest $4 billion into petrochemical projects in Iran, said a senior official in a report.

Linde is considering investment in several Iranian projects, including Damavand Petrochemicals, in cooperation with Japan’s Mitsui, Marzieh Shah-Daei projects director at the National Petrochemical Company (NPC), was quoted as saying in a Press TV report.

She added that the projects to benefit from the investment have not been finalised yet.

Germany’s BASF, the world’s largest chemical producer, also plans $6 billion of investment in Iran’s petrochemical sector, NPC's director of planning Hamid Reza Rostami said in December.

He added that the company will make the investment in Asaluyeh where Iran is carrying out its largest gas development project by tapping gas from the giant South Pars field in the Gulf.

BASF and Linde sent their executives with German Minister of Economy Sigmar Gabriel to Iran in July to discuss investment and transfer of technology, said the report.

Minister of Petroleum Bijan Zangeneh has said the lifting of sanctions would enable Iran to fulfill its 20-year vision plan, including its target to produce $70 billion of petrochemicals a year at current prices, it added.

Meanwhile, another report said that two leading German chemical companies have signalled their readiness to invest around €4 billion to €8 billion ($4.34 billion to $8.68 billion)) towards the development of petrochemical projects in Iran, said a senior official.  

The two firms are yet to finalise the amount of investments in Iran but are currently conducting studies on investment potentials in Iran's petrochemical sector, Abbas Shari-Moqaddam, head of Iran’s National Petrochemical Company (NPC), was quoted as saying in The Iran Project.

The names of the firms were not released.

He said that NPC is in talks with investors from Germany, Spain, Japan and Italy, adding that foreign investors are waiting for finalisation of feedstock pricing formula and the full implementation of the Join Comprehensive Plan Of Action (JCPOA).

He added that on securing the requested land for the two German firms, they will start building petrochemical plants in Assaluyeh, south of Iran.

Iran has dozens of half-finished petrochemical projects which, once completed, will double the country’s petrochemical production capacity from the current 60mt/y, it added.

Tags: | Iran | German | Petrochemical firms |

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