China to finance $1b worth of Iranian petchem projects

Business Materials 31 August 2010 17:08 (UTC +04:00)

National Petrochemical Company (NPC) and a Chinese consortium will finalize their negotiations on financing $1 billion worth of Iranian petrochemical projects in the coming days.

The amount will be allocated to the top priorities in Iran's petrochemical sector, the Mehr News Agency reported.

Despite their active presence in Iran's oil and gas sector, the Chinese companies have not yet invested in Iran's petrochemical projects.

Iranian Deputy Oil Minister Hossein Noqrehkar-Shirazi said in July that the volume of Chinese investment in upstream oil and gas projects is 29 billion dollars.

Chinese companies are currently involved in building the Arak oil refinery.

The 20-Year Outlook Plan envisions the petrochemical output to reach 100 million tons by 2015 which is the end of the fifth five-year development plan.

By then 61 petrochemical projects will come on stream at the cost of $43 billion.