Suspension of finance deal denies

TEHRAN Oct 22 (Shana): Petroleum ministry denied a 20 billion dollars finance deal between Iran and China on development of petrochemical projects has been suspended.

Yesterday, Mehr new agency published a report stating the agreement on financing Iran’s petrochemical projects by China has been suspended but Shana findings showed that the report was baseless.

According to Shana findings, finance agreement between the two countries is a general deal and has not come into force yet, so the speculations on its suspension are denied.  

Earlier Iranian minister of petroleum, Bijan Namdar Zanganeh, had expressed hope the value of petrochemical products to become double reaching 40 billion dollars by intensifying efforts in the sector.  

According to Zanganeh, petrochemical sector can not only wane the country off selling raw materials but can help to generating value added and complete the chain of value in downstream sector through producing various products.

In the meantime, deputy managing director of National Petrochemical Company (NPC) said new prices of feedstock consumed by domestic petrochemical plants will be announced in near future after taking a final decision on the issue.

Speaking to Shana, Mohammad Hosain Peyvandi said transfer of petrochemical companies under the provisions of the constitution’s article 44 has caused some challenges in view of the way of providing feedstock and setting its prices, especially due to low level of price of natural gas being delivered to some petrochemical plants.

He continued under the targeting subsidies law the price of feedstock has been set based of 65 percent of FOB prices in the Persian Gulf which will remain unchanged for ten years in order to encourage investment in oil, gas and petrochemical sector; a law which needs transparency because there is no a benchmark for gas exports in Persian Gulf region.

By SHANA

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