$14b p.a. Potential in Petrochem Sector

$14b p.a. Potential in Petrochem Sector$14b p.a. Potential in Petrochem Sector

Lifting sanctions against Iran will bring in $12-14 billion in annual revenues in the petrochemical sector, deputy director of Mahshahr Petrochemical Special Economic Zone (PETZONE) said, ISNA reported.

Ghasem Amiri said, "Termination of oil and trade restrictions will create significant investment opportunities for foreign and domestic companies."

Underlining the completion of value chain as a major need for the development of petrochemical sector, he reiterated Iran benefits from sufficient workforce, technology and raw materials.

Nonetheless, following a potential agreement on Tehran's nuclear program, the official called for toning down expectations and pointed out that the economy, including the petrochemical industry, will not have an immediate uplift once the sanctions are removed.

Iran and the P5+1 (Britain, China, France, Russia, the US plus Germany) reached a framework agreement on Tehran's nuclear program on April 2 that calls for lifting all trade sanctions against Iran, the details of which are to be finalized by a June 30 deadline.

Annual petrochemical output is projected to surpass 66 million tons by March 2016. Iran produced more than 44 million tons of petrochemicals in the past year.