51960
PGPIC Expects to Sign  $2b Olefin Deal With Total
PGPIC Expects to Sign  $2b Olefin Deal With Total

PGPIC Expects to Sign $2b Olefin Deal With Total

Negotiations with Total has stretched out because of the French firm's concerns over steady supply of much-needed feedstock at fair prices for the olefin plant

PGPIC Expects to Sign $2b Olefin Deal With Total

France's oil giant Total is expected to sign a $2 billion contract by March with the Persian Gulf Petrochemical Industries Company to build a petrochemical complex for olefin production in Iran, the chief executive of PGPIC said Friday.
"Total is willing to play a more active role in Iran's joint ventures under engineering, procurement and construction (EPC) as well as engineering, procurement, construction and financing (EPCF) contracts. It has already presented a scheme and a final agreement will be concluded in the near future," said Adel Nejad-Salim, IRNA reported.
Olefin is a synthetic fiber made from a polyolefin, such as polypropylene or polyethylene, used in a wide variety of products including vehicle interiors, carpeting and wallpaper.
"Total began to study Iran's petrochemical ventures after the historic nuclear agreement was signed between Tehran and the world powers (in July 2015)," he said.
Nejad-Salim stressed that negotiations with Total stretched out because of the French firm's concerns over steady supply of much-needed feedstock at fair prices for the olefin plant.
Based on Iran's pricing formula for feedstock, approved in April, every cubic meter of natural gas as feedstock is priced between 8.5 to 9 cents. However, it may vary based on parameters such as domestic natural gas consumption, the volume of the commodity's import and export and natural gas price in three international hubs including US Henry Hub, UK's National Balancing Point and the Title Transfer Facility of the Netherlands.
According to reports, new petrochemical projects in Iran will receive cheaper feedstock as part of the government incentive to spur growth in the key sector.
“New petrochemical ventures will receive between 10% and 30% cheaper feedstock,” the CEO said without elaboration.
Iran is also offering tax exemptions for investment in energy zones to attract multinationals to its fast-growing petrochemical industry.
Pointing to the potential for petrochemical investments, the official said, "Seven memoranda of understanding have been signed with international companies. But developing the petrochemical industry is need of more foreign and domestic investment."

--- Talks With Foreign Firms
According to Marzieh Shahdaei, managing director of National Petrochemical Company who is also deputy oil minister, several meetings have been held with foreign companies namely Germany's Linde Group and engineering giant Siemens on joint ventures.
German companies have been particularly eager to resume business with Iran and are expected to invest over $12 billion in Iran’s petrochemical industry.
According to reports, some 70% of Iran's petrochemical machinery and equipment are supplied by Linde and Siemens.
Linde Group, founded in Germany in 1879, is a multinational industrial gas and engineering company. It is the world's largest industrial gas company by market share and revenue.
Iran has set an ambitious petrochemical production target of 180 million tons a year by 2025, nearly three times the current level.

 

Short URL : https://goo.gl/EDM1dq
  1. https://goo.gl/nL0mAJ
  • https://goo.gl/lVifNT
  • https://goo.gl/YaxCnD
  • https://goo.gl/TH4VL1
  • https://goo.gl/Q5sYS7

You can also read ...

Essar’s Oct. Iran Oil Imports Fall
Indian private refiner Essar Oil’s imports from Iran fell by...
NIOC has concluded MoUs with Austria’s OMV and Thailand’s PTTEP for undertaking surveys on the oilfield.
Singapore-based Berlanga Group has signed a memorandum of...
Tehran and Dushanbe have discussed the idea of using tracts of land in Tajikistan for cultivating crops to be imported back to Iran.
In his first overseas trip as Iran's energy minister, Reza...
IEA: US to See Most Crude Output Growth in 10 Years
The United States is expected to account for more than 80% of...
Just two offshore companies accounted for 45% of the total owed creditors this year.
Offshore oil drilling and services companies, hurt by the...
S. Arabia’s Falih: 50% of Excess Oil Remain
The world will still have a surplus of oil by the end of March...
Oil Prices Set for Weekly Fall
Oil prices rose on Friday but remained en route for their...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus