TEHRAN- While there are some petrochemical projects currently underway in Iran, 30 new projects have been also drawn up to be implemented in the post-sanctions time, said Marzieh Shahdaie, the director for projects at the National Petrochemical Company (NPC).

Shahdaie made the remarks in an exclusive interview with the Tehran Times on the sidelines of a ground-breaking ceremony for the establishment of gas turbines No. 3 and 4 of Damavand Petrochemical Company’s power plant which is planned to supply electricity to all petrochemical complexes of South Pars phase 2.

The ceremony was a part of a two-day trip to Assaluyeh, the beating heart of Iran’s economy, which pictured its glory again for the journalists and photojournalists who were visiting the area.

The trip organized by the NPC was aimed at showcasing activities and achievements of Iranian petrochemical companies in the Pars Special Economic Energy Zone (PSEEZ) on the verge of the Ten-Day Dawn (February 1-11) which marks the anniversary of the Islamic Revolution of Iran.

Visiting the great job conducted in the petrochemical complexes and being sure that these units will achieve even more successes and bring more sovereignty for the country now that the West-engineered sanctions are being lifted against Iran makes our trip more exciting and encouraging.

Assaluyeh is a port city in Iran’s southwestern province of Bushehr. The city is globally renowned for being home to the PSEEZ which covers a huge site of oil and gas refineries besides petrochemical complexes that receive their gas and gas condensate feedstock from the South Pars gas field (the world’s largest gas reserve which Iran shares with Qatar in the Persian Gulf).

A group of directors from some renowned global energy companies, who visited PSEEZ petrochemical complexes in last December, described Assaluyeh petrochemical zone as ‘impressive and fantastic’.
 
While the sanctions imposed on Iran’s economy created many barriers for the activity of complexes in the PSEEZ, they managed to work successfully relying on the Iranian strong will and expertise.

As in the inaugural ceremony of South Pars phases 15 and 16 on January 11, Iranian President Hassan Rouhani said inauguration of these phases is a symbol of cooperation among different executive bodies and organizations in Iran and indicates the strong will of people. 

*** ‘Foreigners seeking to invest in Iran’

Questioned about the status of Iran’s petrochemical sector for the attraction of foreign investment in the post-sanctions time, Shahdaie answered that foreign companies mainly from Europe and East Asia are seeking to make investment in the implementation of Iranian petrochemical projects now that the sanctions are being removed against the country.

She mentioned Iran’s huge reserves of energy, its strategic location as well as domestic capabilities and expert manpower as the country’s advantages for the attraction of foreign investment.

*** ‘Petchem sector requires $8-10b finance per year’

Shahdaie went on to say that the Iranian petrochemical sector should attract $8-10 billion finance per annum mainly through foreign direct investment.

“We are making our most efforts to attract foreign investment for the implantation of Iran’s petrochemical projects,” the official stressed.

Foreign companies have already greatly welcomed making investment in the Iranian petrochemical industry, she also highlighted.

*** ‘Buying foreign technical knowledge, not equipment’

Addressing the same ceremony, NPC Managing Director Abbas Sha’ri-Moqaddam said: “We will follow the government’s promise in terms of buying technical knowledge rather than equipment from the other countries.”

“Why should we buy equipment from the foreigners while we have such great capabilities inside the country?” the official further noted.

While congratulating on the lifting of West-engineered sanctions against the country and also on the 37th victory anniversary of the Islamic Revolution, the NPC managing director expressed his gladness over witnessing the great achievements of Iranian companies.

Elsewhere in his remarks, Sha’ri-Moqaddam said: “The ground is today broken for launching this project because the required finance is ready.”

There will be no delay for the start of any other projects as soon as the finance is provided, he stressed.

*** ‘France, Italy willing to finance’

The official further announced that some companies from France and Italy have already announced their willingness to finance Iranian petrochemical projects.

Referring to the removal of sanctions against the country, the Sha’ri-Moqaddam said: “Our condition has been changed; under the new condition every foreign company that offers a better financing proposal will be attached priority by Iran.”

*** ‘Petrochemicals make Iran more important’

Another part of our trip was a visit to Jam Petrochemical Complex, one of the main complexes in the area.

Showing the complex’s production units and explaining their activities and products, Seyed Hossein Mir-Afzali the managing director of Jam Petrochemical Company asserted that petrochemical industry can make Iran more important in the global markets.

It is an industry which the country should make most investment for its development, he noted.

*** ‘Ready for $50b foreign investment’

Referring to the great infrastructures that petrochemical industry enjoys in the country, Mir-Afzali highlighted that infrastructures are provided in Iran’s petrochemical sector for the attraction of more than $50 billion of foreign investment.

Making investment in Iranian petrochemical industry has high profit for the foreign companies as the country enjoys huge resources of energy and also access to the free waters besides enjoying high knowledge, he commented.

Iran’s enjoying a lot of low-price feedstock is an advantage which the country should take for the attraction of foreign investment to its petrochemical industry, he added.

Iran plans to raise its petrochemical production to around 129 million tons by the end of the country’s sixth five-year development plan (2021).  

Officials say the country has the capacity to produce 60 million tons of petrochemicals per annum. 
 
Last December, Mohammad-Hassan Peyvandi, the deputy managing director of the NPC, said Iran’s annual petrochemical output is planned to reach 46 million tons by the end of the current Iranian calendar year (March 19, 2016). 

He put the country’s petrochemical production at 44 million tons in the previous calendar year. 
 
In a ceremony held in Tehran on December 28, 2015 to celebrate the 51st establishment anniversary of the NPC, Peyvandi said petrochemical industry can crown Iranian economy, because many other industries of the country are relying on it.