Dec 29, 2015, 11:01 AM

Deputy oil min.:

Petchem production still justifiable amid oil price drop

Petchem production still justifiable amid oil price drop

TEHRAN, Dec. 29 (MNA) – Deputy oil minister has announced that construction of petrochemical units in Iran is economically justifiable despite the falling oil prices.

“Despite the global decline in oil and gas prices and consequently lower profits in construction of gas petrochemical plants, they still remain economically justifiable for Iranian investors,” Head of Iran's National Petrochemical Company (NPC) Abbas Shari-Moghaddam told the reporters on Monday.

The official further highlighted that “establishing oil refineries cannot be economical on its own; rather, construction of petrochemical units adjacent to refineries brings about higher profitability."

Emphasizing that building petro refineries demands huge investments, deputy oil minister called for domestic and foreign investors to enter the field with serious determination; “NPC and National Iranian Oil Refining and Distribution Company (NIORDC) have conducted negotiations on creation of necessary infrastructures for construction of petro refineries in the country,” he asserted.

Shari-Moghaddam touched upon the issue of investment attraction for expansion of Iranian petrochemical industries during the first stage of post sanction era maintaining “given the existence of primary infrastructures, Iran can make a vast leap forward in development of petrochemical industries relying on existing gas resources.”

“Over the past few years, foreign companies felt some concern for taking part in Iran’s petrochemical industry,” stressed deputy oil minister noting “in the light of recent international developments, we can observe the presence of foreign delegations in the countries petrochemical industry.”

Shari-Moghaddam further asserted that the drop in global oil prices can exert an indirect effect on petrochemical products.

Head of NPC reported on Germany’s offer to make a 12-billion-euro investment in Iran’s petrochemical industry concluding “foreign delegations have become more eager to participate in the country.”

 

HA/3011696

 

News ID 113206

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