BASF Targets Megaproject in S. Iran

BASF Targets Megaproject in S. Iran
BASF Targets Megaproject in S. Iran

A delegation from Germany's BASF, the world's biggest chemical producer, is expected to arrive in Tehran this week to discuss the prospect of implementing a "megaproject" in southern Iran, managing director of the National Petrochemical Company said.

"BASF has expressed interest in investing in a megaproject in Iran," Abbas Sheri-Moqaddam said, Moj News Agency reported.

The project will likely include the construction of methanol-to-propylene and methanol-to-olefin production units.

Sheri-Moqaddam said negotiations are in initial stages and the two sides have yet to pinpoint the site of the project.

However, Asaluyeh and the port city of Chabahar are singled out as the likeliest places to host the new Iranian-German venture. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia, Americas and Africa. In 2014, BASF posted around $82 billion in revenues.

In July, a high-ranking business delegation of major German companies, including BASF, Linde, Siemens, Mercedes, Volkswagen and GIZ, visited Iran and met with officials and businessmen to discuss areas of cooperation.

Iran and Germany used to be close trade partners, but bilateral business dropped as a result of sanctions, declining to $2.6 billion last year from around $8.8 billion in 2003-4, according to German figures.

Soon after the historic July 14 nuclear agreement between Iran and six world powers, BASF CEO Kurt Bock said the company sees great potential for investment in the Persian Gulf country.

According to reports, BASF has been operating in Iran since 1959 and retained a small team in Tehran after the US-engineered sanctions banned foreign investments in the country from 2011.