Petchem Exports at 25mn Tonnes
The head of National Petrochemical Company (NPC) has said foreign investors extensively attended Iran's 13th petrochemical forum (IPF) thanks to the removal of sanctions.
Marzieh Shahdaei said four memorandums of understanding had been signed with top petrochemical companies after Iran's nuclear deal with six world powers took effect in January 2016.
"Currently these companies are conducting economic and technical feasibility studies on the projects. They will be concluded this year and agreements will be signed," she said.
Shahdaei cited Royal Dutch Shell and France's Total as companies with which the NPC had signed memorandums. "The amount of investment by these companies will be determined after project assessment based on the rate of return on investment."
She said that the Iranian calendar years of 1395, 1396 and 1397 (from March 2016 to March 2019) are the golden years of petrochemical industry in Iran as new projects would come online.
Shahdaei said Iran's petrochemical exports would rise from 21 million tonnes in the last calendar year to March 2017 to 25 million tonnes in March 2018.
She highlighted a rally in oil prices over the past three months, saying: "That has caused petrochemical prices to increase and revenue from exports is also seeing a significant growth this year."
Shahdaei said that petrochemical industry was capital-intensive, adding: "Development of petrochemical industry will not happen with financing. Implementation of the JCPOA (nuclear agreement) and mutual trust between domestic and foreign companies cleared the way for the increased presence of international investors."
She expressed satisfaction with 20 speeches delivered by senior managers of international companies at the 13th IPF.
New Gas Supply Project Operational
A gas supply project has become operational in "Alamout" area in the northern Qazvin province. The area was connected to national gas network in the presence of President Hassan Rouhani.
The project was in line with the Rouhani administration's plan to supply gas to rural and urban areas.
President Rouhani enumerated measures undertaken by National Iranian Gas Company (NIGC) under his administration, saying: "Under the 11th administration, 9,000 villages were supplied with gas while the number of villages that have received gas since the establishment of NIGC totals 14,000."
Rouhani said that laying pipelines in treacherous areas was a tough task. "We hope that with this gas supply, residents of this area would enjoy more welfare and less environmental pollution."
This project is implemented in two phases, including a 48-kilometer and a 25-kilometer pipeline.
Zangeneh: Talks with Total Continue
Iran's petroleum minister has announced the continuation of negotiations with France's Total for the development of Phase 11 of South Pars gas field.
"Negotiations with Total have never been halted. They continue and make progress," Bijan Zangeneh said on the sidelines of Iran Petrochemical Forum (IPF).
He also referred to the development of Azadegan oil field, saying: "The five or six foreign qualified companies will be invited to bid for the project. But first their technical and then financial and commercial proposals will be examined."
He said that memorandums were to be signed with some foreign companies to conduct studies on Azadegan. "Companies are drawing up their technical proposals," he added.
Asked by Iran Petroleum if any company other than Maersk was willing to develop the oil layer of South Pars, Zangeneh replied: "No other proposal has so far been submitted by other companies in this regard and we are currently in talks with Maersk."
The minister underlined the priority of holding tender bids for oil and gas fields, saying: "All jointly owned fields including the oil layer of South Pars and Azadegan, Yadavaran, Yaran, Siri A, Siri B, Changouleh and Azar fields were prioritized for development."
Regarding talks with Indians to develop Farzad B field, he said that the talks had been long drawn-out. "Iran will get nothing from the Indian side's proposal. Therefore, it was announced that in case they do not change gas prices our negotiations will practically end inconclusively."
"I don't say that negotiations between Iran and India for developing Farzad B has failed, but continuation of talks depend on the Indian side," he said.
Zangeneh said Russia's Gazprom was willing to study Farzad A and Farzad B fields.
"In parallel with negotiations with the Indians, we agreed with Gazprom's offer to study Farzad A and Farzad B and we will give them the data," he said.
"In parallel with all this, we plan to pick an upstream consultant and drill an exploration well, as part of our studies. In case our negotiations with two foreign companies fail to yield results, we will develop this field in a way other than conventional oil contracts," said Zangeneh.
The minister said the reason for such a decision was that Farzad was shared with a neighboring country, adding that its development was a priority.
Zangeneh was also asked about the possibility of extension of an OPEC deal to maintain production cuts in a bid to shore up prices in the second half of the year.
"The messages we are receiving from OPEC and non-OPEC are all positive," he said.
Zangeneh said OPEC and non-OPEC oil producers have been determined to be instrumental in the market management and supply of oil on the market.
He said Iran would support any unanimous decision by OPEC, adding: "Any improvement in the market would benefit both producers and consumers."
Linde Ready to Invest in Iran
An Iranian deputy minister of petroleum has said that Germany's Linde AG has voiced its readiness to invest in Iran's petrochemical projects.
"Linde is ready to cooperate with Iran in several petrochemical projects," Amir-Hossein Zamani-Nia said on the sidelines of IPF in Tehran.
He said ways of financing projects in Iran had been discussed with Linde, adding: "They believed that although European banks hesitate for presence in Iran, there are different ways of financing."
Zamani-Nia said Linde's directors had met with Iran's petroleum minister, Bijan Zangeneh, on the sidelines of the petrochemical forum. "This company has also shown inclination for presence in Iran LNG project."
He said comprehensive talks had been held with Linde, adding that this company was ready to invest in Iran with its own capital.
Zamani-Nia said Linde was willing to transfer technical knowhow to Iran, and was expected to finalize agreements with Iranian companies involved in the petrochemical industry.
He said that Linde's participation in the Damavand petrochemical project and several methanol projects was discussed between Shahdaei and Linde's delegates.
Both sides stressed the necessity of government support in both countries for the facilitation of talks.
PRTC, Norway's Norner Strike Deal
Iran's Petrochemical Research and Technology Company (PRTC) has signed a heads of agreement with Norway's Norner for the development of propylene technology and associated catalysts.
The agreement was signed between Esmail Qanbari of PRTC and Norner's director of business development Lars H. Evenson on the sidelines of IPF in Tehran.
Qanbari said Iran's National Petrochemical Company (NPC) would focus on propylene over coming ten years as part of its plan to boost downstream industry.
He added that PRTC was mulling strategic cooperation with Norner in order to develop petrochemical industry.
Qanbari said that a semi-industrial polypropylene unit with a capacity of 2,400 tonnes a year was launched by PRTC in the central city of Arak last year.
"The polypropylene catalyst was manufactured domestically and tested successfully in Iran," he added.
Qanbari said the objectives behind this propylene unit included indigenization of associated technical savvy, development of products and improvement of processes, indigenization of special equipment, testing catalysts and additives, enhancing output and profitability, technological innovation and training manpower.
He said Iran's rated production capacity of propylene was 965,000 tonnes a year in 2013, adding that the output was planned to reach 4 million tonnes under the 6th Five-Year Economic Development Plan and 9 million tonnes under the 7th Development Plan.