TEHRAN, Oct 08 (Shana) � Deputy Minister of Petroleum and Managing Director of National Petrochemical Company (NPC) Marzieh Shahdaie says Iran's priority in petrochemical industry is use of gas as feedstock.

Shahdaie made the remarks on the sidelines of a ceremony where NPC and Japan's Sojitz signed a memorandum of understating for studies on construction of a methanol to propylene plant (MTP) in Iran.

Shahadie said, "One of the priorities of our petrochemical industry is using natural gas as feedstock. Alongside, the MTP project will be commissioned in cooperation with a Japanese company."

She said the NPC is to implement the MTP project using foreign investment. "Of course, the NPC Research and Technology Company has attained such a knowledge."

She said following improvement of Iran's relations with the international companies, Sojitz announced its readiness for investment in the MTP and GTPP projects and the MoU signed by the two parties will soon be implemented."

"Since there are abundant gas sources in Iran, implementation of the MTP project is big in its kind as it and its commissioning are one of the main policies of the Ministry of Petroleum."

If the project is economically and technically justified for foreign investor, including Sojitz, and addresses its needs, it will be implemented in Assalouyeh, she added.

Shahdaie said the NPC is in talks with German companies as well. "Many German companies seek cooperation with and investment in the Iranian petrochemical industry, hoping that once banking problems and barriers of the two sides are eliminated, the German companies' investment will increase."

By SHANA