Petchem projects hampered by banking restrictions

Tehran, Nov 9, IRNA -- A deputy oil minister says restrictions on banking transactions are hampering Iran’s petrochemical trading. “The sanctions against Iran’s petrochemical industry have apparently been lifted, but due to impossibility of transfer of money into the country, this industry is still under embargo,” Abbas Sheri-Moqaddam said. He said that the agreements reached so far between Iran and six world powers have not significantly eased international sanctions against Iran’s petrochemicals, shana.ir reported. Sheri-Moqaddam, who is also managing-director of National Petrochemical Company, said Iran needs $33 billion in investment to finance petrochemical projects. He added that such investment will help the country earn $26 billion in revenues annually. The official noted that 15 petrochemical projects, currently under way, are expected to add 10 million tons to the country’s output in four years. Iran Petrochemical Commercial Company (IPCC) exported 838 million dollars worth of petrochemicals during the first four months of the current calendar year which started on March 21. The exported products, weighing 831,000 tons, mainly included propane and butane. Iran produced 40 million tons of petrochemicals in the last calendar year, with 9 billion dollars worth of its products being exported. The country plans to increase its petrochemical exports to 12 billion dollars this year. Deputy Director of National Petrochemical Company (NPC) Mohammad Hassan Peyvandi said last month that there are 67 incomplete petrochemical projects in the country. According to Peyvandi, NPC has requested the Iranian government to allocate $5-10 billion out of the National Development Fund to finish the incomplete petrochemical projects. 'The money will be allocated to projects that are more than 60 percent complete,' he said. Peyvandi also said (September 29) that eight methanol-producing units will come on stream in Iran in the next five years. “The units will have the capacity to produce 19 million metric tons per year,” he said. Iran will launch 6 new petrochemical complexes by the end of the current calendar year (March 20, 2015). Once the projects come on stream, the country's total petrochemical production capacity will be increased by 2 million metric tons. Iran’s total petrochemical production is expected to reach 44 million metric tons by the end of the current Iranian calendar year (March 20, 2015)./end