Major Petrochemical Deals Expected in Three Months

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Iran`s state-owned petrochemical company is planning to finalize preliminary agreements on licensing and construction projects in the next few months in what could see the world`s top energy firms return to Iran`s petrochemical market after years of absence.
Marzieh Shahdaei. chief executive officer of the National Petrochemical Company. said her company is in the process of evaluating and finalizing a host of petrochemical memoranda of understanding with foreign companies. ISNA reported.
`We expect some of the preliminary [petrochemical] deals with foreign companies to come to fruition within three months.` Shahdaei said.
She added that it could take longer to hammer out the details of bigger petrochemical ventures by western investors.
`The result of some petrochemical ventures will be announced through the second half of this [fiscal] year` that ends in March 2018. the NPC chief said. underlining the prospective collaboration with France`s Total and Royal Dutch Shell among the biggest petrochemical deals after last year`s lifting of sanctions.
`There are a handful of other big names in negotiations. but they insist their names not to be publicized.` she added.
Total and Iran reached a preliminary agreement this year to build three petrochemical plants. with a total capacity of 2.2 million tons. in a deal that. if finalized. could see the French oil major investing up to $2 billion in Iran.
The agreement entails the development of two plants to produce a special grade of polyethylene. each with an annual output capacity of 500.000 tons. and an ethylene production project via cracking of ethane with 1.2 million tons in annual production capacity.
Shell also signed an agreement with NPC last year on expanding cooperation in the petrochemical industry.
The Anglo-Dutch company has agreed to invest $350 million in a major petrochemical project in Ibn Sina Petrochemical Complex located in Hamedan Province.
According to Trend News Agency. the agreement with Shell could pave the way for the energy giant to invest $6 billion in Iran`s energy and petrochemical projects.