Iran seeking to lure petchem investors

April 26, 1999
International petrochemical producers are keen to invest in Iran, if attendance last week at the first Iran Petrochemical Forum (IPF) in Tehran is a guide. The forum, with attendance put at more than 600, was aimed at luring foreign capital to Iran's petrochemical industry.

International petrochemical producers are keen to invest in Iran, if attendance last week at the first Iran Petrochemical Forum (IPF) in Tehran is a guide. The forum, with attendance put at more than 600, was aimed at luring foreign capital to Iran's petrochemical industry.

Mohammad Ali Najafi, Iran's vice-president and head of the government's planning and budget organization, said, "IPF is being held at a time when dramatic developments are under way in our country," referring to the "environment for international ties" put forth by Iranian President Khatami. The Khatami government's third 5-year plan (2001-2005) includes a major expansion of its petrochemicals industry (OGJ, Apr. 19, 1999, p. 46). The plan's major guideline, says Najafi, is privatization.

Also at the conference, Conoco Inc. blasted U.S. sanctions policy toward Iran. Conoco Senior Vice-Pres. Michael Stinson stressed that the current U.S. policy toward Iran benefits neither country and said he believes progress is being made toward normalized relations between the countries, noting that Iran is dedicated to creating a positive climate for investors: "It is time for the U.S. government to recognize the importance of Iran in the global community and to react to the Iran of today. Our policy toward Iran should be one of engagement and dialogue and not isolationism."

Iran's plans to nearly triple total petrochemicals capacity by 2005 from the current 13.2 million metric tons/ year. In fact, further development plans for Iran's supergiant South Pars natural gas field are aimed at supporting this major increase in production of gas-based petrochemicals such as olefins and methanol, said Mohammad Reza Nematzadeh, Iran's Deputy Minister of Petroleum and President of National Petrochemical Co.

Given Iran's planned petrochemicals expansion, says George Lefroy, executive vice-president of Middle East and Asia-Pacific for Shell Chemicals Ltd., "It is well-positioned to have a strong, integrated (products) portfolio."

He believes Iran has much to look forward to as a future key petrochemicals player in the region.

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