Chinese LOC for Petrochem Complex

Chinese LOC for Petrochem ComplexChinese LOC for Petrochem Complex

China is in the final stages of opening a line of credit for developing a petrochemical complex in Masjed-Soleiman in the southern Khuzestan Province, managing director of Masjed-Soleiman Petrochemical Industries Company said.

“A Chinese contractor is currently operating at the petrochemical site,” Yousef Davoodi was quoted as saying by Mehr News Agency. Referring to 14% progress in the project, the official said the complex is projected to go on stream in the next three years, if finance is provided.

Davoodi also noted that the company has ordered some of the needed equipment, adding that the project’s underground phase will be started in a month.

Based on a report of National Petrochemical Company, two European companies have undertaken designing and licensing of the complex, with the Chinese contractor having implemented 64 urea/ammonia units before.

Hamid-Reza Rostami, director of planning at NPC, recently said 21 new petrochemical plans have been introduced to be financed by China’s line of credit, but only one LOC has until now been opened for one of the projects.

This is while petrochemical officials have earlier announced that funds for four petrochemical plans have been provided by China and following the approval of the Central Bank of Iran and the opening of an LOC in the near future, it will be paid.

According to the sixth five-year development plan (2016-21), Iran’s 62 million tons of petrochemical capacity will experience a 100% increase and earn $40 billion annually.

Plans call for a $28-30 billion in investment to develop the petrochemical industry, of which $11.5 billion are expected to come from foreign investors.