Baku, Azerbaijan, Feb. 2
By Fatih Karimov - Trend:
German Linde Group jointly with Japanese MITSUI & CO., LTD. will invest in various Iranian petrochemical projects, Marzieh Shahdaei, the director for projects at Iran's National Petrochemical Company (NPC) said.
The two companies have offered $4 billion worth of investment for various projects including Damavand Petrochemical Complex, Shahdaei said, Iran's official IRNA news agency reported Feb. 1.
She further said that both companies are among those who held negotiations with Iran before the removal of the international sanctions and studied Iran's petrochemical industry.
After implementation of the nuclear deal last month, the companies held further talks with Iran for cooperation, Shahdaei added.
The Damavand petrochemical project worth $4 billion started in 2006-2007 and is divided into three phases. The project is planned to process 610 mcm of natural gas annually.
Once Damavand Petrochemical Complex comes on stream, Iran's petrochemical output will rise from 60 to 90 million tons per year.
Iran's petrochemical output hit 44.4 million tons in the past Iranian fiscal year (ended on March 20, 2015), 10 percent more year-on-year.
The shortage of natural gas as feedstock, old production units, and the problem of sanctions, which has dropped exports, have caused petrochemical complexes to work below the actual production capacity in Iran.
The Islamic Republic hopes to realize an output of 120 million tons of petrochemicals by 2020 and 180 million tons by 2025.