SHANA– Managing Director of National Petrochemical Company (NPC) Marzieh Shahdaie says Shell and Total have announced for investment in ethane industry on condition the ethane price is 40 dollars.

Shahdaie made the remark in the Petrochemical Industry Educational Workshop in Ministry of Petroleum.

Shahdaie said, "The petrochemical industry problem is not the ethane price, however. There is investment with the current ethane price."

He said in the wake of recent talks, Total said it is ready for establishment of a cracker ethane and two polyethylene units.

"Those complaining of the ethane freedstock price, should know that based on studies made, the current definite price will entail 25 percent profit marginally."

She went on to say there are sessions in Ministry of Petroleum to decide the price for feedstock and experts raise their own view on the issue.

In the Q&A session, Shahdaie commented on rumors that Indian companies had declined to invest in the petrochemical industry and said Indians  had demand receipt of gas feedstock for four to five cents to set up urea and ammonia units and Iran refused to accept the offer.

She noted that Ministry of Petroleum and the NPC do not intend to sell products at cheap price and said, "Ministry of Petroleum does not intend cheap selling just to attract foreign investment."

She said she was not informed of Indian party's decline to invest and said, "We are not ready to deliver the gas feedstock at the rate favored by Indians."

She also referred to talks with the UOP company and said the company had been in talks with Iran through its European branch and is to cooperate with Iran in technology supply.

Shahdaie also referred to frequentation of well-credited foreign companies to Iran for the sake of investment in the petrochemical industry and said they had asked to be anonymous.

She then enumerated the advantages of the petrochemical industry and said foreigners have admitted that with such a potential, Iran can turn into a major petrochemical hub worldwide.

"Water, various kinds of petrochemical feedstock and specialized Iranian forces are among advantages of Iran's petrochemical industry," she announced.

To a question of number of new licenses in the petrochemical industry, Shahdaie said the new permissions are based on the natural gas feedstock.

"Additionally, when the 11th government took office, many permissions were issued for the already inactive bodies; so, our priority to encourage the license holders was to activate the projects."

Shahdaie said formerly, import of technical know-how was not possible due to problems with international relations but talks have been held for the GTO so as to promote the relations.

To the end of her remarks, Shahdaie said Shell company had in the past conducted studies on GTL to invest in Iran but it yielded no result and following severance of sanctions, the company shifted to Qatar.

"A new Memorandum of Understanding (MoU) has been signed with the company and it is to offer its proposal, one of which might be investment in the GTL production. The company, however, has valuable licenses," concluded Shahdaie.