Chinese Firm Exploring Petrochem Opportunities

Chinese Firm Exploring Petrochem OpportunitiesChinese Firm Exploring Petrochem Opportunities

Representatives of China Petroleum Engineering and Construction Corporation have traveled to Iran’s capital Tehran to evaluate petrochemical investment opportunities.

The delegation has reportedly visited petrochemical facilities in Mahshahr Petrochemical Special Economic Zone—Iran’s major petrochemical hub—exploring grounds for investment in the southern port city, Mehr News Agency reported.

The state-run CPECC is following in the footsteps of China National Technical Import & Export Corporation, aka CNTIC, that has reportedly reached an agreement to construct Mehran Petrochemical Complex in Ilam Province under an agreement worth $1.8-1.9 billion. The new petrochemical unit will produce propylene, phenol formaldehyde resin and acrylic acid.

On the sidelines of the visit, Abdolreza Zargar, the head of Mahshahr zone, expressed readiness to sign an engineering, procurement, construction and financing contract with the Chinese firm on the development of midstream and downstream industries by the Chinese group.

He added that a possible deal with CPECC will entail transfer of technology. Marzieh Shahdaei, deputy oil minister, said last week that five Iranian petrochemical plans have so far been financed by the Chinese, adding that more Chinese investment in petrochemical projects is “unlikely”.

“Petrochemical projects such as Middle East Kimiay-e Pars Company, Bushehr, Siraf, Lordegan and Masjed Soleiman have found investors from China, but Hengam and Lavan projects have rejected Chinese finance,” she said.

Referring to ongoing talks with European investors, Shahdaei, who is also the managing director of National Petrochemical Company, said in order to develop the petrochemical industry, Iran has to attract between $5-7 billion in annual investment.