Germany's BASF 'Ready to Invest $4bn in Iran': Shana
UPDATES with comment from BASF (third paragraph)
The world’s largest chemical company, Germany’s BASF, has reportedly said it is ready to invest $4bn in a petrochemical project in Iran.
The managing director of Iran’s National Petrochemical Company (NPC), Marzieh Shahdaei, said BASF intends to take a 60% stake in the first phase of investment in Parsian Special Energy Zone, southern Iran, Shana news agency reported on February 12.
The remaining 40% investment will be secured by Iranian companies, Shahdaei said, adding that the German company is willing to raise the volume of investment in the next phases of the project. BASF said it did not comment on rumours.
“Water, electricity, and gas infrastructures have been provided and a tender will be held for establishing a harbour. So far, two Chinese and German investors have participated in the tender.”
The NPC director for planning, Hamid Reza Rostami, said in December 2015 that BASF was ready to invest $6bn in Iran’s petrochemical sector.
“The foreign company has decided to make direct investment in Iran and also transfer technology and management, and secure guaranteed market. We welcome such opportunities,” the official added.
Part of the investment will be related to steam crackers and olefins, while other parts are related to propylene, gas-to-polymers and methanol-to-olefins, he explained.
Kurt Bock, chairman of the board of executive directors of BASF, has said, “German technology and quality of work are highly respected. So, we have good chances to reestablish links with Iran. Iran’s petrochemical industry is progressing. When Iran rejoins the global economy, it will affect the markets.”
Iran is planning to attract about $70bn in foreign direct investment in its petrochemical sector by 2025.
Following the conclusion of the Joint Comprehensive Plan of Action (JCPOA) between Iran and world powers, many companies from Germany, Italy and the Netherlands have already sent delegations to Iran, discussing opportunities for future cooperation.
Iran’s petrochemical sector has set an annual output target of around 129mn metric tons by the end of its sixth five-year development plan (2021). The country produced 44.5mn metric tons of petrochemicals in the past Iranian calendar year (ended on March 20, 2015), up more than 10% from 40.5mn metric tons the year before.
In the first 9 months of the current Iranian fiscal year, started on March 21, 2015, the country produced 35mn metric tons of petrochemicals, of which 14.3mn metric tons were exported, according to a government report.
Iran desk