Private Sector to Invest $2.5b in Energy Projects

Private Sector to Invest $2.5b in Energy ProjectsPrivate Sector to Invest $2.5b in Energy Projects

The private sector has planned to invest $2.5 billion in major refinery projects in the Pars Special Economic Energy Zone (PSEEZ) in Bushehr Province in the next Iranian year (starts March 20), managing director of PSEEZ said Thursday.

Mehdi Yousefi said the projects in the port city of Siraf - including eight gas condensate refineries each with 60,000 barrels per day (bpd) capacity as well as their processing units – will be launched by May 2015, IRNA said in a report.

Once operational, the refineries will help reduce crude sales of gas condensate, generate added value and create jobs, he noted.

PSEEZ is located 300km east of the port of Bushehr. The refineries will be located in the Pars Kangan region of PSEEZ. Pars Kangan is host to Phase 12 of the South Pars oilfield in the Persian Gulf with approximately $17 million in daily revenues.

Investments by private companies will be made in line with Article 44 of the constitutional law, which calls for new opportunities for the private sector and boosts privatization. It also is in accordance with the 'economy of resistance', a measure proposed by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei to counter the sanctions, promote domestic growth and reduce consumption.