Iran in talks with Mitsui and Total SA to attract US$60 bln in foreign investments

22-Jul-16

Iran is in talks with Mitsui & Co. Ltd. and Total SA as part of its push to attract US$60 bln in foreign investment to more than double the country’s capacity to produce petrochemicals over the next decade, as per Bloomberg. State-run National Petrochemical Co. plans to increase output capacity to 150 mln metric tons a year by 2026, as per Managing Director Marzieh Shahdaei. That means completing 55 unfinished projects and 28 new production facilities. If it succeeds, Iran would be producing more than twice the current output of Saudi Basic Industries Corp. Iran is seeking to upgrade and expand its energy industry, including petrochemicals, in a drive to rebuild its economy after the easing of international sanctions in January. The Persian Gulf nation has boosted crude output since then to near pre-sanctions levels and ramped up production of natural gas. Iran holds the world’s largest reserves of gas, a raw material for petrochemicals.

Although most of the restrictions on Iran were lifted under last year’s nuclear accord, some U.S. sanctions remain in place, prohibiting transactions in dollars and keeping large international banks at bay.