Iran, Italy sign euro 1bn petrochemical MOU

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Iran and Italy on Sunday signed a memorandum of understanding (MOU) worth one billion euros for cooperation in petrochemical industries.

After the termination of anti-Iranian sanctions many international companies had announced readiness for presence in Iranian petrochemical industries and held talks with concerned Iranian officials, which are leading to signing of agreements over the past couple of days.
Last week for instance the new Managing Director of the National Petrochemical Company (NPC) Marziyeh Shahedayie announced intensive talks with the German BASF Company on finalizing a four billion euro investment in Iran.
The Persian Gulf Holding Company, which is a subsidiary to the NPC, has signed the one billion euro MOU with Italy’s Maire Tecnimont Group.
The Marie Tecnimont Group is a leading provider of engineering and construction, technology and licensing, and energy business development worldwide, with a specific focus on oil and gas, petrochemicals and fertilizer processing industries.
They offer a wide range of services on an individual or combined basis for a broad range of facilities and applications, including engineering services, procurement of material and equipment, and construction services through project management expertise.
Iran produces 60 million tons of petrochemical products annually and is planning to increase its output to 180 million tons by 2025.
In order to achieve that goal the National Petrochemical Company (NPC) has estimated the need for absorbing some seven to ten billion dollars of investments each year, the major part of which should come through foreign sources.
Shahedayie had earlier told IRNA that the companies that prior to the finalization of the JCPOA had begun talks with Iran on cooperation in petrochemical industries have come to Iran to finalize those talks.
The NPC managing director referred to Germany’s Lindh Company and the Japanese Mitsui Company which have announced readiness to invest in some Iranian petrochemical projects including Damavand Petrochemical Project.
She said that those two Japanese and German companies will invest four billion dollars in Iranian petrochemical projects although the contracts with them have not been finalized yet.

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