Iran petrochemistry, German Linde in talks for oil cooperation

EghtesadOnline: Iran's National Petrochemical Company (NPC) and German Linde AG begun talks over investment and participation in Iran’s most strategic petrochemical complex.

News ID: ۷۳۵۲۷۰

23 July 2016

Six month after the implementation of Joint Comprehensive Plan of Action (JCPOA), no official agreement has been signed with a foreign firm for development, investment attraction of reopening of credit and finance lines in the country’s petchem industries.

According to ISNA, despite the inking of a contract with France’s Total for construction of a petrochemical plant in southern Iran, as well as numerous talks with Japan’s Mitsubishi and BASF of Germany to fund ongoing projects in Iran, neither negotiations nor MoUs have led to sealing of new contracts in the country’s petrochemical industry.

Meanwhile, Iran’s petrochemical production capacity has reached about 62 million tons per year though National Petrochemical Company (NPC) officials have estimated that the figure will hit 100 million tons upon implementation of the Sixth National Development Plan.

European and in particular German companies appear to be more willing to make investments in petrochemical industries of Iran.

Accordingly, Linde of Germany has recently launched talks with NPC aiming to ink the first BOO (build, own, operate) contract for construction, completion and implementation of Damavand Petrochemical Complex.

Iran’s most strategic petrochemical project in Asaluyeh, Damavand Petrochemical Complex, provides utilities and offsite services required for petrochemical projects at Phase II of Pars Special Economic Energy Zone (PSEEZ), mehr reported.

Member of the Executive Board of Linde AG Responsible for the Engineering Division Christian Bruch had said last year in an oil conference in Tehran “Linde will partake in Iran’s petchem market following JCPOA implementation and the lifting of sanction.”

Moreover, the German firm has begun talks with Iranian petrochemical companies to provide goods, equipment and spare parts.

The Linde Group, registered as Linde AG, is a multinational industrial gases and engineering company founded in Germany in 1879. It is the world's largest industrial gas company by market share as well as revenue.