‘Iran petchem sector to attract $70bn in foreign investment by 2025’

An Iranian deputy oil minister says the country is planning to attract about USD 70 billion in foreign direct investment (FDI) in its petrochemical sector by 2025 as a result of its high potentials in the sector.

Speaking to reporters on the sidelines of the 12th Iran Petrochemical Forum (IPF), which opened in Tehran on Sunday, Abbas Sha’rimoqaddam, Iran's deputy oil minister and managing director of the National Petrochemical Company (NPC), said having long shores along international waters and abundant feedstock for petrochemical industries were Iran's major advantages in the sector.

“Iran's numerous advantages are enough to encourage foreign investors to bring their capital to our country,” the official said adding that development of petrochemical industry is in line with Iran's plan to implement the Economy of Resistance.

Sha’rimoqaddam stated that international investors and companies that have taken part in the Sunday forum will be introduced to investment potentialities and opportunities of Iran.

The managing director of the National Petrochemical Company stated that major investors in the world are currently looking for new regions to take their capital and “under present circumstances, Iran is one of the best options for them.”

The official added that following the conclusion of the Joint Comprehensive Plan of Action (JCPOA) between Iran and world powers in Geneva in mid-July, many companies from Germany, Italy and the Netherlands have already sent delegations to Iran, discussing opportunities for future cooperation.

“Various countries from Asia and Europe have come to us” to negotiate investment opportunities in Iran's energy sector, the official said, adding that European companies have been more enthusiastic in this regard.

The Iranian officials remarks came after Wood Mackenzie, a global energy, metals and mining research and consultancy group based in Edinburgh, Scotland, released a report last week saying that Iran is capable of attracting USD 70 billion of investment in its petrochemical projects.

Afsar Hussain, an expert in Wood Mackenzie's EMEARC Refining and Chemicals research team, which specializes in olefins and polyolefins, said that Iranians "have very ambitious plans to expand their petrochemical industry and have a large number of projects in various planning and construction phases.”

"We believe Iran can attract USD 70 billion worth of investments, but only over a prolonged period that confirms it is an attractive investment opportunity. By comparison, the US shale gas revolution attracted over 200 projects worth over USD 130 billion within a decade of its emergence," Hussain added.

According to Wood Mackenzie’s report, Iran exported about USD 15 billion worth of petrochemicals in 2011, before Western sanctions were imposed on the country, and has been able to revive its petrochemical exports volume since 2014 as a result of the lifting of petrochemical-related sanctions in November 2013.

The 12th Iran Petrochemical Forum opened in the Iranian capital city of Tehran earlier on Sunday to introduce existing capacities of the country’s petrochemical industry to domestic and foreign investors.

The forum was addressed by Iran's First Vice President Es’haq Jahangiri, Iran's Foreign Minister Mohammad Javad Zarif, Iran's Oil Minister Bijan Zangeneh, a number of high-ranking officials of Iran's petrochemical sector, as well as representatives of domestic and foreign companies.

The forum is attended by representatives of 97 foreign companies from 25 countries in addition to 368 Iranian companies.

Managing directors of 35 foreign petrochemical plants are scheduled to visit Iran's South Pars region on the sidelines of the 12th Iran Petrochemical Forum, which will continue until Monday afternoon.

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