Sasol investment in Iran’s petchem sector under question
Baku, Azerbaijan, Nov. 6
By Fatih Karimov – Trend
South African Sasol Company’s investment in Iran’s petrochemical sector is under question, Amirhossein Bahraini, managing director of Iran’s Arya Sasol Polymer Company, said.
The company may withdraw from taking part in Iran’s petrochemical projects due to high price of ethane feedstock for petrochemical units, Bahraini said, Mehr news agency reported Nov. 6.
The National Iranian Petrochemical Company and Sasol jointly launched the Arya Sasol Polymer Company in southern Iran, he said, adding that Sasol divested its interest in the joint company under the sanctions in 2013 and henceforth, has no invested or operating interest in Iran.
However, following the removal of the international sanctions the South African firm was seeking to make investment in Iran’s petrochemical and polymer projects, Bahraini said.
Arya Sasol Polymer is Iran's biggest olefin factory built in an area of 78 hectares in the Pars Special Economic Energy Zone (PSEEZ).
Last month in similar statements, Ahmad Mahdavi, director general of the Association of Petrochemical Industry Corporations (APIC), said that Indians have decided not to make investment in Iran’s petrochemical sector due to high feedstock gas price.
The prices are not attractive for foreign investors, Mahdavi underlined.
Indians wanted to purchase the needed natural gas as feedstock from Iran at $40 per 1,000 cubic meters, but Tehran rejected.
Iran puts gas feedstock price for petrochemical plants at $80 per 1,000 cubic meters, two times more than Indians’ offered level.