A group of German companies are proposing to invest €12bn in the Iranian petrochemicals sector, Iran’s Deputy Oil Minister Abbas Sheri Moqaddam said this week. With international sanctions expected to be lifted in about one month’s time, the minister – who is also MD of Iran’s NPC National Petrochemical Company – said that the construction of petrochemical units
would remain profitable in the face of falling oil and gas prices.
Iran’s petrochemical output hit 44.4 million tons in the last Iranian fiscal year which ended on March 20, a 10% year-on-year increase.The country’s actual production capacity is around 60 million tons, but the shortage of natural gas as feedstock, old production units,and the effect that sanctions had had on exports,had caused its petrochemical complexes to work at lower capacities. Annual ethane production stood at 2.8m tons last year which Iran wants to increase to 4.2m tons by the end of the current fiscal year.