Investment to launch development ventures in Mahshahr Special Petrochemical Economic Zone in Khuzestan Province has exceeded $17.8 billion, creating jobs for close to 3,000 people, managing director of the zone said.
"More than 10 upstream and midstream initiatives with an annual production capacity of 7 million tons will go on stream in the region during the next three years," Omid Shahidinia was also quoted as saying by Shana on Monday.
Pointing to under construction plants with an investment of $1.5 billion, he said, "Upon completion, the units will create more than 5,000 direct jobs. They will significantly increase Mahshahr petrochemical output."
“By expanding the zone, the second wave of petrochemical development will commence, which is aimed at adding 7 million tons of petrochemical production to the annual nominal capacity,” he said.
According to the official, developing export corridors with the help of banks tops MSPEZ priority list, as it can provide impetus for improvement and help secure a footprint in international markets.
The country's petrochemical output capacity currently stands at around 60 million tons. Tehran hopes to attract billions of dollars in foreign finance to more than double that capacity by 2022, the end of its Sixth Five-Year Economic Development Plan.
"Between 60 and 70 downstream petrochemical projects are ready to be handed over to investors," Shahidinia said without elaboration.
International firms like Royal Dutch Shell, France's Total, BASF, LINDE and Chinese and Japanese investors seek a stake in Iran's petrochemical market.
The official underscored that a barrier facing petrochemical development in Mahshahr is allocation of land, hoping that the expanding Mahshahr petrochemical zone will address the issue.
Asked about feedstock contracts, Shahidinia hoped that downstream industries can also purchase their much-needed feedstock via stock exchange based on long-term deals, in which case prices will be more stable in the market.
Commenting on MSPEZ's eco-friendly measures, he added, "There are six wastewater plants in the region and 10 incinerators are being constructed to dispose of industrial waste."
Kourosh Plant
According to the official, operations to construct a new petrochemical complex called Kourosh commenced last December in Mahshahr, whose main product would be propylene, a building block for a large number of chemicals.
“Kourosh Petrochemical Plant is designed to produce 150,000 tons of propylene and its derivatives per annum,” he said.
"The plant will be completed in 40 months at a cost of $190 million and will create 700 jobs in the construction phase and 200 jobs after its launch."
The complex will be built in an area of 10 hectares, or about 100,000 square meters.
