Iran’s NDF Allocates $6 Billion to Petrochemical, Refining Projects
Iran’s National Development Fund has allocated $6 billion (USD) to the implementation of petrochemical and refining projects in the current Iranian year, which ends in March 2016.
Amir Hassan Fallah, the National Iranian Petrochemical Company’s director for finance and investment development, said that for the time being, LCs have been opened for some of the projects, Shana news agency reported on December 21.
“Foreign investors have widely announced readiness to participate in Iran’s petrochemical industry," he said. "For instance, Japanese firms are ready to invest in utility, olefin, and ammonium; Indians are ready to invest in urea; South Korea is ready to invest in fuel and aromatics; and Europeans are ready to invest in GTTP and basic units.”
The country's sixth five-year development plan (2016-2021) has stipulated that 36 projects should be implemented. Currently, 15 projects mainly urea and ammonium, polypropylene, olefin, and aromatics, which are mostly in Chabahar and South Pars regions, can be implemented, he explained.
A minimum $450-500 million is needed for implementing the projects, he said, adding that the Iranian petrochemical industry needs $10 billion investment annually.
Marzieh Shahdaei, manager of projects at the National Petrochemical Company, also said on December 20 that eight projects will be inaugurated by the end of the current Iranian fiscal year (March 20, 2016).
She went on to say that 60-67 prioritised projects are being implemented, 16 of which have been completed by over 87%.
Shahdaei said on December 14 that Iran’s nominal petrochemical production capacity is around 60 million tons, but due to a shortage of feedstock, the output is about 44.5 million tons, of which 32.2 million tons is exportable.
There are 67 semi-finished projects which require $40 billion to be completed, she noted.
Meanwhile, 36 new projects have been launched in petrochemical hubs, such as Sea of Oman coasts, she said, adding that the projects require $32 billion and will add 64 million tons to the country’s petrochemical output.