Petrochem Bonds To Fetch $1b Overseas |
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The sale of petrochemical bonds is expected to attract $1 billion in foreign investments.
Deputy oil minister for petrochemical affairs, Adel Nejadsalim, added that these bonds will be presented in foreign markets and details of the sale will be clarified by October.
He noted that in 2008-9 petrochemical projects worth $2.3 billion were implemented with foreign investments.
"In 2009-10, we intend to invest about $3.3 billion in petrochemical industries through foreign participation," he said.
Main Problem
The official, however, said the main problem in joint ventures with foreign companies is the price of gas.
"Foreign parties expressed dissatisfaction with the price of gas for fueling petrochemical complexes, which was not specified. We have conducted negotiations with Oil Ministry to find a solution to this predicament," he said.
Arya Sasol has voiced its preparedness to participate in Olefin 12. Turkey's Petkim is interested in contributing to the 300,000-ton polyethylene project in Mahabad and the 1.65-million-ton methanol project in Assalouyeh. India's Nagarjuna has announced its readiness to participate in the one-million-ton urea and ammonia project in southern Iran while another Indian company is interested in the EPDM 40 project (1,000 tons) in southern Iran.
Moreover, Indonesia's national oil company has reached initial agreement with National Iranian Gas Company (NIGC)National Iranian Gas Company (NIGC)
to recycle ethane of Parsian Gas Refinery with a capacity of 1.3 million tons per year. A contract for producing propane dehydrogenation, which means producing propylene from propane, was concluded with the private sector in 2008-9.
Companies from Brazil and Uzbekistan have also announced their interest in participating in national petrochemical projects."
Exports
Nejadsalim, who is also managing director of National Iranian Petrochemical Company (NIPC)National Iranian Petrochemical Company (NIPC)
, said that in the past four years, petrochemical exports rose by 30 percent."During this period, the level of production without considering the privatized complexes, experienced an 18-percent growth, total sales grew by 28 percent and value added in selling petrochemicals increased by 40 percent. In the same period, the installed capacity of petrochemical industries grew by 10.2 percent," he said.
The official emphasized that the share of petrochemicals in non-oil exports declined by 8.9 percent.
"The petrochemical industry in the past four years grew in a favorable manner and this 8.9 percent reduction is merely because of growth in exports of other non-oil industries," he said.
Nejadsalim forecast petrochemical production and exports in 2009-10 to reach 38.9 million tons and 15.5 million tons respectively.
The value of exports will be $5.8 billion while the corresponding figure in 2008-9 was $7.2 billion and the decline this year is due to the ongoing global financial meltdown and decrease in prices.
Privatization
Nejadsalim said 14 petrochemical companies have been ceded to the private sector so far.
"This includes ceding 12,438 million shares worth 36,350 billion rials. In the current year, three petrochemical complexes will be ceded through the stock market and a few others through tender," he said.
Commenting on the implementation of the leader's guidelines on the Iranian Constitution's Article 44 in petrochemical industries, he said, "Following the agreements reached with the Iranian Privatization Organization (IPO), 13 companies affiliated to NIPC will remain with the company and other companies and complexes will be ceded to the private sector."
Nejadsalim announced that in 2009-10, 10 petrochemical projects will be launched.
"These complexes will increase the capacity of petrochemical industries by 10 million tons," he concluded.
By Majid Karimi
© Iran Daily 2009
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