Iran's National Petrochemical Company (NPC) has awarded a €428 million contract for linear low density polyethylene (LLDPE) units to Iranian company of Nargan in partnership with Italy's Tecnimont. The LLDPE units are to be located in Lorestan and Mahabad - affiliates of Bakhtar Petrochemical Company, set up along the western ethylene pipeline. Bakhtar Petrochemical Company is 70% owned by the private sector.
The deal includes purchasing technology, providing basic engineering and detailed engineering, supplying equipment, and holding training courses. The plants are expected to supply to nearby markets in Iraq, Turkey, Armenia and Azerbaijan.
According to the agreement, the contract will be put into action in 24 months and Bakhtar Petrochemical Company (BPC) is in charge of implementing and running the project. The contract on the two petrochemical plants was signed with Tecnimont in 2005, but the contract was announced null and void as the needed finance was not provided.