Iran petrochemical sector still under sanctions, top official says

Business Materials 7 November 2014 17:14 (UTC +04:00)

Tehran, Iran, Nov. 7

By Milad Fashtami - Trend:

The sanctions on Iran's petrochemical sector is apparently lifted, but the embargo is practically still in place, Deputy Oil Minister Abbas She'ri-Mohaqaddam said.

He said since the country's banking sector is still under sanctions, practically Iran is not free to do business in the petrochemical sector, Iran's Mehr News Agency reported on Nov. 7.

He went on to note that the country needs $33 billion of investment to complete some petrochemical projects with the total capacity to produce 55 million metric tons of products.

"Once the projects come on stream, the country will be able to earn some $26 billion through exports," he said.

Deputy Director of National Petrochemical Company (NPC) Mohammad Hassan Peyvandi said on October 26 that there are 67 incomplete petrochemical projects in the country.

According to Peyvandi, NPC has requested the Iranian government to allocate $5-10 billion out of the National Development Fund to finish the incomplete petrochemical projects.

"The money will be allocated to projects that are more than 60 percent complete," he said.

Peyvandi also said on September 29 that eight methanol-producing units will come on stream in Iran in the next five years.

"The units will have the capacity to produce 19 million metric tons per year," he said.

Iran will launch 6 new petrochemical complexes by the end of the current calendar year (March 20, 2015).

Once the projects come on stream, the country's total petrochemical production capacity will be increased by 2 million metric tons, Iran's Mehr News Agency reported on October 5.

Iran's total petrochemical production is expected to reach 44 million metric tons by the end of the current Iranian calendar year (March 20, 2015).