Foreign investment vital for Iran's petrochemical industry
(8 Jun 2014) Iran is an oil and gas-rich region, with a reservoir of 33 trillion cubic meters of natural gas resources.
Natural gas is the main ingredient used in producing petrochemicals.
Iran's petrochemical plants export around 12.8 million metric tones abroad, which is valued USD 9.9 billion. 14.5 million tons of petrochemical products are used domestically.
Experts say Iran failed to attract enough foreign investment in the past 8 years when Mahmoud Ahmadinejad was president.
Western sanctions imposed during his term of power contributed to many foreign companies leaving the country.
As a result, domestic employment in petrochemical plants was affected.
Eshagh Jahangiri, Iran's first vice president, says:
"Using overseas financial resources, supported by the country's banking system and the national development fund, is a key policy Iran is pursuing to develop its petrochemical industry."
Oil minister Bijan Zanganeh stresses "Our petrochemical industry still needs to access modern technology, financial resources and presence in international markets. Latest assessments show that we need financial resources as mush as $70 billion USD, out of which 30% is needed for downstream industries especially polymers and particularly polypropylene and related products."
Representatives from 300 Iranian companies and 50 foreign companies from 27 countries took part in the conference. Germany, France, Spain, Japan and Switzerland were among the countries represented at the event.
Iranian officials promised during the conference that they are planning long-term partnerships with foreign investors.
Under an interim nuclear deal reached last November in Geneva, the U.S and E.U agreed to suspend sanctions on Iran's petrochemical exports, as well as sanctions on associated services.
However, foreign investors apparently need long-time assurances to be convinced to return to Iran.
Mohammad Hossein Peyvandi, deputy head of Iran's state-controlled National Petrochemical Company says attracting foreign investment would depend on the outcome of the ongoing nuclear talks between Iran and the P5+1.
The P5 + 1 are the US, Russia, China, the United Kingdom and France, plus Germany
"Everything depends on the conclusion of P5+1 negotiations (with Iran). We have to a little bit wait for this," Peyvani says.
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Natural gas is the main ingredient used in producing petrochemicals.
Iran's petrochemical plants export around 12.8 million metric tones abroad, which is valued USD 9.9 billion. 14.5 million tons of petrochemical products are used domestically.
Experts say Iran failed to attract enough foreign investment in the past 8 years when Mahmoud Ahmadinejad was president.
Western sanctions imposed during his term of power contributed to many foreign companies leaving the country.
As a result, domestic employment in petrochemical plants was affected.
Eshagh Jahangiri, Iran's first vice president, says:
"Using overseas financial resources, supported by the country's banking system and the national development fund, is a key policy Iran is pursuing to develop its petrochemical industry."
Oil minister Bijan Zanganeh stresses "Our petrochemical industry still needs to access modern technology, financial resources and presence in international markets. Latest assessments show that we need financial resources as mush as $70 billion USD, out of which 30% is needed for downstream industries especially polymers and particularly polypropylene and related products."
Representatives from 300 Iranian companies and 50 foreign companies from 27 countries took part in the conference. Germany, France, Spain, Japan and Switzerland were among the countries represented at the event.
Iranian officials promised during the conference that they are planning long-term partnerships with foreign investors.
Under an interim nuclear deal reached last November in Geneva, the U.S and E.U agreed to suspend sanctions on Iran's petrochemical exports, as well as sanctions on associated services.
However, foreign investors apparently need long-time assurances to be convinced to return to Iran.
Mohammad Hossein Peyvandi, deputy head of Iran's state-controlled National Petrochemical Company says attracting foreign investment would depend on the outcome of the ongoing nuclear talks between Iran and the P5+1.
The P5 + 1 are the US, Russia, China, the United Kingdom and France, plus Germany
"Everything depends on the conclusion of P5+1 negotiations (with Iran). We have to a little bit wait for this," Peyvani says.
Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter: Twitter: AP_Archive
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You can license this story through AP Archive: http://www.aparchive.com/metadata/you...
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