Iran sign $3.2bn petchems agreement with HEC

Iran’s state-run Ahdaf Investment Company, a subsidiary of the Oil Pension Fund Investment Company signs a $3.2bn agreement with Hyundai Engineering (HEC) to develop the second phase of the Kangan petrochemical plant.

The seconf phase of the Kangan petrochemical plant is planned to produce 1mn metric tons/yr of ethylene as well as 750,000 mt/yr of light and heavy polyethylene.

According to a report by Iran’s oil ministry, the second phase will be 95% funded by Korea. The Ahdaf Investment company has already invested Euro 120mn to cover 30 percent of the cost of the first phase, which is aimed at extracting gas liquids from South Pars.

The first phase will become operational four years after the final investment decision, which could be taken in nine month’s time.

This is the third major agreement, signed between Iran and foreign companies in petrochemical projects after removal of western sanctions on Iran’s nuclear program in January 2016.

However, it is not easy for Iran to attract western investment and technology to this sector, which needs $55bn investment by 2025 if it is to triple its petrochemicals output to the planned 180mn mt/yr.

Speaking at S&P Global Platts European Petrochemical Conference in Dusseldorf on Wednesday, industry consultants Aman Amanpour said that investments in Iran would see ethylene production expand by 5 million mt, propylene by 5 million mt, methanol 15 million mt, MEG by 2 million mt and aromatics and derivatives by at least 2 million mt.

Recent Posts

GTT and Golden Long John pioneer sustainable textile processes

Green Theme Technologies (GTT), has partnered with Golden Long John to advance environmentally conscious fabric dyeing and finishing processes.

22 hours ago

KOLAB Collection launches NFC-tagged clothing line

KOLAB Collection, a leader in sustainable fashion, has revolutionized the industry by launching NFC-tagged clothing line as part of its…

23 hours ago

Advance Denim, Lenzing, and Asahi Kasei launch sustainable stretch denim

Advance Denim, Lenzing’s, and Asahi Kasei have teamed up to launch the LoopTy Collection, a series that combines functionality, style,…

23 hours ago

Rohrer Corporation unveils sustainable packaging line

Rohrer Corporation has launched its sustainable packaging line, EcoVolve to reduce waste and conserve natural resources through innovative product development.

2 days ago

Engineers develop wearable ultrasound device

Researchers at the University of California have created a wearable ultrasound device designed to provide continuous, wireless monitoring of muscle…

2 days ago

Toray and GC aim for eco-friendly nylon production

Japan's Toray Industries and PTT Global Chemical (GC), are working together to develop a technology that can mass-produce adipic acid…

2 days ago