Construction of four plants with 6-million-ton annual production is scheduled to commence soon in Qeshm, the largest island in the Persian Gulf.
Former chief executive officer of the National Petrochemical Company, Reza Norouz-Zadeh, made the statement on Monday on the island, addressing a conference on "Qeshm Oil and Energy Investment Opportunities", Shana reported.
"The venture estimated to cost $7 billion is financed by an (unnamed) foreign investor," he said without elaboration.
Pointing to the unique energy reserves of the southern island, Norouz-Zadeh said, "Qeshm sits atop more than 4 billion barrels of oil and 283 billion cubic meters of gas in place. It can become the energy hub in the Persian Gulf and serve as a major producer of oil, gas and electricity."
The existence of hydrocarbon fields, the strategic Strait of Hormuz, proximity to the Oman Sea, connection to national electricity network and access to Central Asia markets are among advantages of Qeshm that can and will underpin its position as a center for oil, gas and petrochemical export, he told the conferees.
He added that as per an Oil Ministry directive, 25 million cubic meters of natural gas per day will be delivered to Qeshm petrochemical complexes as feedstock.
"This amount of feedstock is sufficient to feed more than four petrochemical plants," he said, noting that the complexes can produce 6 million tons of value-added products per annum.
Iran's petrochemical output currently stands at 62 million tons, but is expected to reach 72 million tons by next March after new petrochemical ventures in Bushehr and West Azarbaijan Provinces come on stream.
Iran holds some of the world's largest crude oil and natural gas reserves, but its petrochemical industry is comparatively underdeveloped due to lack of foreign investment.
The Qeshm Gas Condensate Refinery, with a processing capacity of 120,000 barrels per day, is expected to become operational in January.
The refinery's output will be liquefied petroleum gas, kerosene, diesel, jet fuel and naphtha. The venture is aimed at capitalizing on abundance of natural gas supply and creating jobs in the region.
