An argument by Conservative parliamentarians that Iranian firms could carry out the project more cheaply has been the cause for Iran to annul the 960 million euro (US$1.19 billion) deal for "Olefins 11". The deal was signed with German industrial gases company Linde and South Korea's Hyundai to build two ethane crackers in the Gulf port of Assaluyeh, for the production of 2.4 mln tpa of ethylene to feed a national ethylene grid and 11 petrochemical plants. Linde's share of the deal was 404 million euros and Hyundai's share was 451 million euros.
With the cancellation of this contract that is to be awarded to domestic contractors helped by France's Technip, the country estimates a saving of 260 million euro on Olefins 11. An initial advance of 7.2 million euros has been paid to Linde and Hyundai for the project. Iran does not plan to pay any compensation to the two for cancellation of the project as their working hours have been lesser in proportion to what they have been paid.
25-Apr-06 
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