Energy
0

Iranian Petchem Company Seeking $1.1b

Iran’s petrochemical industry needs $60 billion in foreign investment to more than double chemicals production capacity
Petchem Company Seeking $1.1bPetchem Company Seeking $1.1b

Iran’s Persian Gulf Petrochemical Industries Company is in talks with Asian firms to raise an estimated $1.1 billion for expansion programs, including a methanol project to serve China and other Asian customers.

An Italian company is “at the forefront” as a potential investor, according to Touraj Seyed Arvanaghi, managing director of Persian Gulf Petrochemical ‘s Veniran Apadana methanol project in Asaluyeh near the Persian Gulf coast. He declined to identify the companies until negotiations are concluded, Bloomberg reported.

Iran’s petrochemical industry needs $60 billion in foreign investment to more than double chemicals production capacity over the next decade, according to Marzieh Shahdaei, deputy oil minister and managing director of state-run National Petrochemical Co. Iran boosted  crude production after international sanctions were eased in January, to almost 4 million barrels a day from 2.8 million barrels at the end of last year, data compiled by Bloomberg show.

Veniran Apadan is seeking to produce 1.65 million metric tons of methanol a year for export to China and other parts of Asia, Arvanaghi said. Methanol is used as an antifreeze and in feedstock to produce acetic acid and formaldehyde. The project is expected to cost $480 million, with $385 million for equipment. In February, Japan signed a memorandum of understanding to provide up to $10 billion of financing for Iranian projects involving Japanese companies. Japan’s Marubeni Corp. got an order for equipment from Persian Gulf Petrochemical about two months ago.

Veniran Apadan, initially set up by Venezuela and Iran, is seeking to change its name through the government’s Organization for Registration of Companies, Arvanaghi said.

 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com