Iran's Persian Gulf Holding Company to Sign $7 bn Petrochemical Project Deal

Iran's Persian Gulf Holding Company (PGHC) is likely to sign a $7b deal with a European company to develop a petrochemical project in Assaluyeh, south of Iran, state owned news agency Shana reported Monday.

Adel Nejad Salim told the news agency that the company has held talks with major petrochemical firms in Europe and Asia since removal of sanctions and the outcome of the talks will begin to become visible in coming months.

"Over the course of the past 12 years, the relations between Iran's petrochemical industry and foreign firms was nearly severed, but during the past two years, given the removal of western sanctions, ground is being paved for restoration of Iran's relations with other countries, as we have so far signed a number of significant MoUs with foreign sides," said Salim.

He said the European firm has proposed to invest over $7b for development of a petrochemical project, adding the 5-year project entails all parts of the value chain and will provide new petrochemical products in Iran.