Iran’s petrochemical projects need $77 billion in investment until 2020, which can be “easily” materialized, director for coordination and supervision at National Petrochemical Company said on Sunday.
“Petrochemical industry is a capital-intensive sector, each project of which requires an investment ranging from $100 million to billions of dollars,” Ali Mohammad Bosaqzadeh was also quoted as saying by ISNA.
Bosaqzadeh added that domestic enterprises are not capable of making such an investment.
"The policy of the Persian Gulf country for attracting investment, which should also be pursued in future, has been either to take out loans or sell shares of petrochemical projects," he said. “Before the imposition of sanctions, Iran received a loan of $7 billion to implement some of South Pars Gas Field’s plans, 70% of which have been paid back and it will be completely cleared by 2020.”
Bosaqzadeh said European companies have expressed readiness to invest up to $8 billion.
"Foreign companies are interested in making investment in complete chains of petrochemical projects in Iran, on which several rounds of negotiations have so far been held," he said.
“Establishment of petrochemical chains requires elements such as large pieces of land, sufficient feedstock and logistical systems for the export of products.”
Bosaqzadeh said domestic and foreign companies can also set up joint firms to implement Iranian petrochemical projects.
The official underlined that international companies can own Iranian projects, while they can enjoy the benefits of domestic feedstock and deliver cutting-edge technology, which enhances the domestic industry’s technical abilities and results in value added products.
Oil Industry in Need of $150b Investment
Hamidreza Salehi, the acting head of Energy Commission of Tehran Chamber of Commerce, Industries, Mines and Agriculture, told ILNA that Iran’s oil and gas industry can “definitely” attract an investment of $150 billion in the coming years.
"In view of the opportunities in Iran’s rich oil and gas reserves, the country can fuel the engine of economy and consequently curb the inflation rate," he said. The official noted that Iran has more than 15 shared oil and gas fields, the oil extraction rate of which should be raised, but there is no international Iranian company such as Petronas, Gazprom or China National Petroleum Corporation.
Salehi noted that along with signing oil contracts with giant companies, domestic enterprises should be empowered to be able to undertake the development plans of the country’s fields in the near future.
