Companies from several countries, including Spain, France and China, have expressed readiness to launch joint ventures in Iran's lucrative petrochemical sector. Spain's Mecanicas Bolea S.A. is helping Iranian experts construct a desalination plant in Kangan Petro Refining Complex—a major petrochemical and refinery project in southern Bushehr Province.
Pedro Saura Cabello, director general of Spanish Mecanicas Bolea S.A., made the statement in Tehran on Monday, NIPNA, the National Petrochemical Company's news agency reported.
"There are good opportunities to expand collaboration between Iranian and Spanish industrial firms and we are trying to promote cooperation," Cabello said. According to the official, the company has been involved in designing and manufacturing petrochemical equipment for the past 30 years.
"Mecanicas Bolea specializes in designing pressure vessels as well as heat exchangers," Cabello said, adding that Iranian experts can draw on the company's expertise to design petrochemical units.
Reportedly, South Korea's Hyundai Engineering Company has also signed an agreement, worth $3.2 billion, for financing and building the second phase of Kangan Complex. As per the agreement, 95% of the funds will be provided by Hyundai through South Korean financial institutions. The complex is set to receive natural gas from Phase 12 of the South Pars field in the Persian Gulf for producing 400,000 tons of heavy polyethylene and 350,000 tons of light polyethylene a year in the second phase.
Jeumont Electric
Among other industrial groups, France's Jeumont Electric, a major equipment supplier to the power generation and conversion markets, has expressed willingness to extend collaboration with Iranian petrochemical complexes.
"Jeumont Electric has played a key role in Iran's upstream and downstream ventures," Karim Doha, the company's general manager, said.
"The firm has teamed up with Iranian companies, namely National Petrochemical Company, Pars Oil and Gas Company, National Iranian Gas Company and National Iranian South Oil Company." The official noted that the company's contracts normally entail not only transferring technology but also cutting-edge equipment.
"Iranian enterprises have great abilities and are competent enough to meet international standards," he said.
According to NIPNA, Chinese conglomerate Xianglu Dragon Group has also signed a memorandum of understanding, worth $7 billion, with NPC to increase methanol output.
Tehran earned $9.55 billion in revenues from petrochemical exports last year, official data show. Petrochemical consignments went mostly dispatched to Asia, Europe and South America. Iran holds some of the world's largest crude oil and natural gas reserves, but its petrochemical industry is comparatively underdeveloped.
Tehran says its new petrochemical ventures require over $70 billion in investments that should mostly come from foreign sources, such as France's Total and Royal Dutch Shell that are reportedly close to sealing billions of dollars worth of licensing and construction deals in the Iranian petrochemical market.
