The Iranian government is in talks with investors from Asia to set up petrochemical joint ventures in the southeastern port city of Chabahar, as per Platts. Chabahar is planned to be developed by the Iran government similar to the Pars special economic zone in Assaluyeh, whereby methanol, urea and olefins projects will be set up in association with foreign partners. The government has marked a free trade zone in the Chabahar for establishing the petrochemical projects that will also be given a tax holiday of 15 years. This will help the country accomplish it's plan for the port city to reach a petrochemical production capacity of 15 mln tpa over the next five years at an investment outlay of US$20 bln.
The plan for Chabahar closely follows the news that India, one of the largest importers of petrochemicals from Iran, is directing resources to develop the Chabahar port. The two nations have, at the 16th Indo-Iran Joint Commission meeting held in New Delhi in July, decided to expedite the development of Chabahar port.