Chinese consortium is in a deal with National Iranian Petrochemical Company (NIPC) to invest US$1 bln in petrochemical projects in Iran, as per Mehr news agency. It is the first time Chinese companies participate in the construction or development of petrochemical projects.
Negotiations are also underway with several other countries for the development of Iran's petrochemical industry. NIPC is also negotiating with Turkish Pektim Company and Yurukum Company of Singapore about the construction of two methanol blocks, and with a company from Oman concerning the construction of urea and ammonia blocks in Hormuz petrochemical company. NIPC is also discussing with Indonesia about the construction of urea and ammonia units at Hengam Petrochemical Company, and with Venezuela for building a methanol block at VenIran Petrochemical in Assalouyeh. The company is also in talks with Russia’s Sibour for building three petrochemical plants, and South African company Sasol may be in charge of Olefin 12 construction in Bushehr Petrochemical project.
Sixty-one petrochemical projects are to be carried out in Iran during the Fifth National Development Plan, raising the country's petrochemical output to 100 mln tpa. The construction program requires a total of US$43 bln in investment. Contracts have already been signed for 28 of these projects.
According to AFP, in 2009, China became Iran’s premier trading partner, with bilateral trade worth US$21.2 bln compared to the figure of US$14.4 bln three years ago. Sanctions from the west on Iran have supported growth of Chinese co operation in Iran.