$5b Petrochem Export Target

$5b Petrochem Export Target$5b Petrochem Export Target

Iran aims to export $5 billion of petrochemicals annually to Europe after the economic sanctions are lifted, the Association of Petrochemical Industry Corporation (APIC) secretary general said, Mehr news agency reported Sunday.

Ahmad Mahdavi said Iran has plans for the export of petrochemicals and polymer products to European markets, and several products are already being exported to Europe.

However, he stressed that increasing the volume of exports is subject to lifting all sanctions. "We could exchange technologies and licenses, open credit lines and increase exports should the sanctions be removed."

Iran and the P5+1 (Russia, China, France, Britain, the US plus Germany) clinched a tentative agreement on Tehran’s nuclear energy program in Switzerland last week, which calls for lifting all trade sanctions against Tehran. The deal is due to be finalized by a June 30 deadline.

"Foreign companies will be able to increase investment and participate in petrochemical projects when the sanctions are removed," Mahdavi said, adding that costs of exports and money transfer as well as insurance expenses for cargo ships will significantly be reduced when the sanctions are gone.

Iran on average exported $2 billion of petrochemicals per year to the EU states in the pre-sanctions era. It currently produces around 43 million tons of petrochemicals, a volume which could double upon the completion of several incomplete projects. Southeast and Central Asia, South America as well as Turkey and several African countries are among export destinations for Iran's petrochemicals.