Iran not to sell cheap gas to Indian petrochem companies: Official

November 2, The Iran Project- In response to the request of Indian companies to get a cheap feedstock for petrochemical industries, Marzieh Shahdaei, the managing director of Iran’s National Petrochemical Company (NPC) said on Wednesday that Iran’s Oil Ministry is not going to come down in price for attracting foreign investment.  

Answering the question whether Indian company withdrew from investment in Iran’s petrochemical industry, NPC managing director stated that the Indian company demanded Iranian gas at five cents in order to construct urea and ammonia units but we did not accept their request.

Speaking about the Indians’ withdrawal, she said it is up to them to decide whether they can negotiate with the Iranian private sector or think of another option.

The feed rate is determined according to the oil ministry’s formula, added Iran’s petrochemical industry officials in the talks with Indian companies.

Indian companies are reportedly interested in constructing urea and ammonia units for the production of agricultural fertilizers in Chabahar Free Zone since the Iranian port is rich in gas feed and close to India.

Companies from Germany, France, Denmark, Spain, Italy, the Netherlands, South Korea, Japan and even the US have indicated readiness to participate in Iran’s petrochemical projects, according to officials.

The petrochemical industry is the biggest source of foreign earnings for Iran after oil. Last year, Iranian companies exported about $12.8 billion of petrochemical products.

Deputy Managing Director of Total Co. Serge Lorek said on October 18n that Iran’s capacity in production of petrochemical products places it third worldwide.