TEHRAN July 01(Shana)–National Petrochemical Company (NPC) chief says the company is readying the ground for welcoming investors into the country’s petrochemical industry once the sanctions are removed.
“Very good schemes have been devleoped to endorse investors into the country’s in the petrochemical sector for Iran to see a giant leap in its petrochemical industry,” Abbas Shari-Moqaddam, who is also deputy petroleum minister in petrochemical affairs, adding, “We invite all Iranian and foreign investors to step in and fund petrochemical projects.”
He said many leading countries in the petrochemical industry are prepared to return to Iran given the promising political outlook for Iran by the sanctions relief.
“We are prepared to endorse investors in all petrochemical development projects,” said the official.
Earlier, Shari-Moqaddam had said the removal of sanctions will not be the panacea for all the country’s petrochemical headaches.
He said setting long-term feedstock prices as well as providing petrochemical infrastructure and stabilizing regulations are the key levers to attracting foreign investors in the petrochemical sector, rather than the removal of sanctions.
“If we are to lure more investors into our country, we must ensure that three principles are observed: setting long-term feedstock prices, creating state-funded infrastructure and stabilizing regulations for investment,” the official told Shana.
If these three principles are not considered, so long as investors will not be able to envisage a future for their investments, not many financiers are expected to enter into Iran even if the sanctions are removed, added the official.
He said there are 120 half-finished developmental petrochemical projects across the country of which 67 are prioritized by NPC for financing and operation.
He said the international restrictions on Iran’s economic sectors have held up progress in petrochemical projects, and expressed hope that once Iran reaches a nuclear accord with world powers, completion of the projects will be more seriously pursued by NPC.
Iran is expected to see its petrochemical production cross 180 million tons by 2015, a deputy head of National Petrochemical Company said recently.
Mohammad-Hassan Peyvandi said Iran’s petrochemical production is to reach 44 million tons this year. That would make up 40% of Iran’s non-oil exports.
He said a road map has been designed for Iran’s petrochemical industry to realize its objectives.