IRAN - Petrochemical Ventures Elsewhere In Iran.

There are several new petrochemical ventures elsewhere in Iran. They include private ventures which are expanding. The main NPC and private ventures are the following:

A 660,000 t/y methanol plant on Kharg island, Iran's main oil terminal, went on stream in March 2000 and was inaugurated by President Khatami. Built by Lurgi under a BBC, this is part of NPC's Phases 1&2 and took 48 months to complete at a cost of $149.4m plus IR465.5 bn. Its first shipment, 10,000 tons, went to China by tanker as the plant was inaugurated. Most of Kharg's methanol output now is being supplied to a 500,000 t/y MTBE plant at the Bandar Khomeini complex which came on stream in March 2001. In 1998, NPC offered public subscription for this plant on the Tehran Stock Exchange and raised about $24m to help finance it.

A 30,000 t/y ethanolamin unit at Arak petrochemical complex came on stream at the beginning of March 2000. This complex is to have a grassroots plant to produce 30,000 t/y of ethoxylates, with Ballestra of Italy to provide the technology. To be completed in early 2003, the plant will raise Arak's olefins capacity by 25%

A 50,000 t/y LAB plant near Kermanshah is being built for NPC's Mashal Daran Petrochemical Co. by Tecnicas Reunidas of Spain and Enerchimi, with basic engineering done by IFP which is also supplying the technology. The plant is to be on stream in 2002.

A 50,000 t/y LAB plant at Bandar Abbas is to be a JV between NPC and Qatari United Development Co. (UDC), for which a letter of intent was signed in June 2000. A joint feasibility study was done in Aug. 2000. UDC is a new company, launched in 1999 through an initial public offering (IPO) to invest in both upstream and downstream opportunities in Qatar and the neighbouring countries.

NPC's Isfahan petrochemical complex is having a 21,500 t/y phthalic anhydride (PA) unit and a 40,000 t/y dioctyl phthalate (DOP) plant built. Final BBC negotiations with bidders began in Oct. 2000, and award of two BBCs is awaited.

Kerman Tyre & Rubber Co., which produces 2.5m car and truck tyres a year, in mid-Oct. 2000 signed a JV agreement with Continental of Germany to co-produce in Iran tyres for the domestic and abroad, with Central Asia and the Middle East being growth markets.