Petrochem Firms Look at European Markets

Petrochem Firms Look at European Markets
Petrochem Firms Look at European Markets

The value of petrochemicals export in the present Iranian calendar year (ends March 2015) is set to exceed $12 billion, allowing for export to European markets to increase, secretary general of the Association of Petrochemical Industry Corporation (APIC) said, Shana news agency reported.

"Domestic demand for petrochemicals has been met to a large part, and Iranian companies are now reaching out to European markets." Ahmad Mahdavi said, adding that petrochemical complexes are operating well despite obstacles.

Total value of petrochemicals is estimated to reach $22 billion by the end of the year, 10 billion of which is to be used domestically and the rest will be exported. However, Mahdavi said reaching the export target will depend on sufficient fuel delivery to power plants in the cold seasons.

In October, he said Iran does not have excess capacity for petrochemicals export to European markets, and export is on a limited level. Following the ease of sanctions on the petrochemical industry, demand for Iran's petrochemicals has soared. "Domestic producers can claim a bigger share of the global petrochemicals market offering quality products."

The US imposed tough sanctions on Iran to curb the country's nuclear program which it claims is geared to military use. Iran insists it is peaceful. Iran and world powers failed to reach a "comprehensive deal" by a November 24 deadline and extended the talks for seven more months.

The APIC official called on petrochemical companies to design long-term, comprehensive plans to expand exports, and said, "Production will see a significant boost when several petrochemical projects come on stream in the near future."