Petrochemical Company in Talks With France's Axens

In line with policies to develop petrochemical projects, negotiations are underway with France's Axens to provide Kian Petrochemical Company (KPC) with technical expertise to produce high value added commodities, says an official at the National Petrochemical Company.

“Concurrent with signing an agreement with Linde Group to manufacture petrochemical products under the license of the German company, namely olefin and butadiene, talks are underway with Axens to obtain the necessary technical expertise,” Mohammad Sadeq Fazeli was quoted by Mehr News Agency as saying on Friday.

Axens is an international provider of advanced technologies, catalysts and services to the petrochemical industries. The main scope of Axens’ business is focused on the conversion of oil, gas, biomass and coal to fuels and major petrochemical intermediates.

Commenting on pronounced interest of international companies to play a role in Iran's petrochemical initiatives, Fazeli said the NPC has signed memoranda of understanding with Royal Dutch Shell, Spanish industrial and investment association Sercobe, Germany's BASF, French oil and gas giant Total as well as Japan's Mitsubishi.

Regarding KPC's petrochemical plant that is under construction in the southern Bushehr Province, the official noted that the project is currently in the front end engineering design (FEED) phase, a stage before engineering, procurement, and construction operations begin.

Pointing to Linde's cooperation in petrochemical initiatives in South Pars projects in Asalouyeh, Fazeli said soon after the international sanctions were lifted last year, the German firm expressed interest in resuming technical collaboration with Iranian companies.

Attaching importance to such agreements between the private sector and international companies, he said, "NPC will do its best to support KPC because we believes a strong private sector is conducive to attracting foreign investment. The agreement demonstrates closer cooperation with one of the key players in the petrochemical industry."

A subsidiary of the Persian Gulf Petrochemical Industry Company, Kian Petrochemical Company is planning to carry out one of the biggest petrochemical projects in Iran that includes olefin and aromatic production units in Pars Special Economic Energy Zone in Bushehr.

"Plans have been made to produce 7.5 million tons of aromatic compounds a year, including xylene and ethylene," Fazeli added, saying that annual feedstock for the plan will reach 4.5 million tons including gas condensates and ethane from South Pars phases 4, 13 and 14.

According to NPC managing director, Marzieh Shahdaei, Iran plans to boost annual petrochemical production capacity by 40 million tons over the next five years, boosting total output capacity to 100 million tons a year.