Energy
0

No Plan to Undersell Petrochem Feedstock

Investment in petrochemical development projects in underprivileged regions is entitled to receive feedstock discount, but slashing prices by 50% is impossible
Iran uses a pricing formula whereby gas feedstock is offered to petrochemical plants at 9 cents per cubic meter.Iran uses a pricing formula whereby gas feedstock is offered to petrochemical plants at 9 cents per cubic meter.

Although Indian investors have signaled their interest in petrochemical projects, they stress that gas feedstock prices offered by Iran is too expensive to let them clinch a final deal, National Petrochemical Company's deputy for investment said.
"Indians had asked for natural gas feedstock to be priced at about 6 cents per cubic meter for urea and ammonia plants, but Iran does not intend to offer its gas resources for cheap," Hossein Alimorad was also quoted as saying by IRNA. 
According to the official, investment in development projects in underprivileged regions is entitled to receive feedstock discount, but slashing prices by 50% is impossible.
"Negotiations usually go well, yet it has never ended up in an agreement because Indians claim they will be overcharged for the feedstock," he said, adding that NPC believes prices are set based on international norms. Alimorad noted that Indians have always sought very low prices and NPC has quoted internationally-approved prices.

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com