Iran’s plans to increase petrochem capacity by 64 mln tons through 2015 requires US$49 bln of investments

12-May-11

Petrochemical production capacity in Iran is expected to increase by 64 mln tons over 5 years through 2015 but requires investments worth $49 billion, as per Managing Director of the National Petrochemical Company (NPC). The Fifth Five-Year Economic Development Plan calls for an annual US$5-6 bln in investments of which the National Development Fund and foreign firms are expected to provide US$3 bln and US$2 bln respectively, as per IRNA. NPC priorities for 2011-12 include improving feed supply, issuing forex and rial participation bonds, putting eight projects into operation, signing 30 trade plans, attracting foreign investors and finalizing a contract for constructing a major gas pipeline to provide feed for petrochemical units in the western regions. Western economic sanctions imposed on Iran over its nuclear energy program have had no negative effect on exporting petrochemical products.