Iran’s Investment opportunities - National Petrochemical Company · 2018. 6. 19. · Iran due to...

Iran’s Investment opportunities in Petrochemical Industry

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Iran’s Investment opportunities in Petrochemical Industry

Autumn 2017

Iran … one of the oldest cradles of civilization … a shining gemstone at the heart of the ancient continent, Asia, … a nation proud of a rich cultural heritage of 7000 years old, a telltale of history, science, literature and human rights as declared in the Cyrus Cylinder, man’s first human rights charter, which dates back to the 6th century before common era, covering an area of over 1.6 million square meters. Located in the south west of Asia, architecture of Iran, with numerous fascinating historical buildings and monuments, deserved to be listed as World Heritage Sites, depicts a history of genuine culture and customs built upon kindness and respect for others and compassion. Iran is the land of literary masterpieces with great poets like Hafez, Sa’di, Ferdowsi, Attar, Khayam and Rumi to name only a few. It’s the standard-bearer of the development of natural sciences including chemistry and medicine with pioneering work and findings by scientists like Avicenna, Razi and Abu Rayhan, whose works, written several centuries ago, have been translated into many different languages and became the beacon for other scientists for generations to come. Iran, the land of four seasons and unique products like saffron, pistachio and the most beautiful carpets, lies on the path of the ancient Silk Road. Today, the “strategic situation” and “abundant hydrocarbon resources” are the two important factors in attempts to revive the Silk Road. Therefore, studying the role and situation of Iran is considered to be very remarkable, not only by policy-makers and macro-planners of the country, but by regional and international statesmen and economists as well. Iran possesses abundant natural resources, including iron, aluminum, oil, gas and many others which offer ample investment opportunities in different industries. These huge oil and gas resources, which are readily available and cost-effective, have paved the grounds for the expansion of petrochemical industry in Iran.

Iran one of theoldest cradles of civilization

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National Petrochemical Company

National Petrochemical Company of Iran, as one of the four main deputies of the Ministry of Petroleum (MOP), is responsible for strategic management and macro -planning, policy- making, regulating, creating infrastracture and facilitating and supporting sustainable development of the country’s petrochemical industry. Relying on more than half a century of experience, the company would support and patronize all projects and petrochemical plants across Iran ranging from upstream to downstream industries. By creating dynamic business environment to all local and foreign investors, the company encourages all domestic and foreign investors to choose Iran as their final destination of investment, a country which is into the job of developing petrochemicals production chain. Iran ranks second largest producer of petrochemical products in the region with annual production installed capacity of 64.6 million tons of petrochemical products by the end of 2016. With 157.8 billion barrels of proven oil reserves (ranking fourth in the world’s oil reserves) and total proven natural gas reserves of approximately 34 trillion cubic meters (ranking the second as holder of natural gas reserves in the world), Iran is estimated to be the most stable feed supplier to the petrochemical industries across the country and in the World. Also due to other factors affecting risks and investment return, including investments security, quick jump in the development, easy access to international waterways, a growing domestic market, educated young population and engineering companies, qualified contractors and manufacturers, Iran turns to be a major hub for investment in the petrochemical industry across the region.

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Investment Directorate

Investment Directorate, as one of the National Petrochemical Company Directorates, is structured with macro objectives in investment, partnership and finance of developing projects.In this respect, identifying, developing and introducing investment opportunities and trusting projects to reliable, authorized investors and facilitating investment in the shortest possible time are among the main objectives of the Directorate. Steering strategic partnerships through technical and economic evaluation of investors, supporting various processes to absorb investment, supporting current investment funds and creating new investment funds with respect to the targets of the National Petrochemical Company’s objectives are among other tasks of the Investment Directorate. Cooperating with other Directorates of the National Petrochemical Company, Investment Directorate shall use its mandate to provide an appropriate business environment for domestic and foreign investors in Iran’s petrochemical industry.

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Availability of sustainable feed stock near international waterways Stabilization of feeds prices during the operation based on approved formulas Discounts defined up to 30% of feedstock to establish plants in least developed areas including downstream chains Long-term tax exemptions from operating time in free-trade zones, special economic areas and least developed regions Growing domestic & regional markets Well developed export & import infrastructure (ports,...) Existence of domestic qualified engineering & constructing companies beside impowered equipment manufacturers Access to experienced experts and professionals Access to international waterways Existence of developed infrastructures (airport, railway, port, jetty, etc.) in petrochemical hubs

The advantages of investing in Iran’s petrochemical industry

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Iran’s Foreign Investment Promotion and Protection Act (FIPPA) Advantages and customs exemptions in Free Trade and Special Economic Zones(FTSZ):O Easy to export goods without any custom charges O Import goods at the lowest customs chargesO Export of imported goods to other zones without any customs charges O Allocate land to qualified applicants after evaluation O Ensure foreign investment based on free zones lawO Tax breaks for imports of all goods and materials such as equipment and buildings materials O No requirement to get visa to enter the free trade zonesO Issuance of residence permits for foreign nationals without legal formalities in FTSZO Refund of customs duty paid for importing raw materials in the production of export goodsO Exemption of custom tariffs for the transportation of semi-finished goods into main land

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Access to International waterways and Import and Export Facilities is One of the Advantages of Investing in Iran’s Petrochemical Industry

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Iran due to its special geographical position and having huge hydrocarbon reservoirs has created a unique opportunity for investors who are willing to invest in petrochemical industry.Many projects under implementation also has opened the route for the banks and financial institutes who are willing to provide finance facilities to such projects.

Petrochemical Projects1: The projects defined by National Petrochemical Company (Table No. 1)These projects are defined by Planning and Development Directorate of Iran National Petrochemical Company (NPC) based on the market study and other effective investment elements. These projects will be entrusted to technical/commercial capable investors according to the process of Issuing Feedstock License.

2: Projects under implementation (requiring finance facilities) (Table No. 2) These projects have already the feedstock license and in line with development goals of NPC have started their execution activities. Since these projects are fully supported by NPC, These Projects have already the feedstock license and line with development goals of NPC have started their execution activities. Since these projects are fully supported by NPC, it would be unique opportunity for the banks and financial institutes to consider financial support of those projects.

3: Projects introduced by investors Investor can make the feasibility study and prepare a business plan and by own propose it as a new idea to the Investment Directorate. Investment Directorate, in cooperation with other National Petrochemical Company Directorates, studies the offered idea, evaluates documents related to the technical and economic capabilities of the investor, and gains the approval of board of directors at the National Petrochemical Company before the projects are entrusted to the investor.

Issuing feedstock license processAll potential foreign investors who are willing to invest in a grass root petrochemical project in Iran need to write a letter of Interest

Investment and Finance Opportunities

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(LOI) to Investment Directorate of National Petrochemical Company (NPC) to submit the required information and documents. At the time the request of investors are pre accepted by NPC, they have to Up-Load the relevant information and documents into website Investapply.nipc.ir via a registered company in Iran.The steps to consider the request of investors for investing in a petrochemical project and issuing the Feedstock license are described as below:

First step: Documents required A copy of the original document of the company constitution A copy of the original: From first and last official newspapers displaying company changes A copy of the original: From registration documents, including registration certificate, national ID and economic code 2 recent years financial statements approved by the regulators or audit organization Applicants, executive background in the past two years and any activities related to the requested projects Preliminary Business Plan /Feasibility Study

Second step: Documents Evaluation Verification of the applicant company’s legal capacity and ... Evaluation of Preliminary Business Plan /Feasibility Study Investigating Feedstock availability Evidence of financial capability Evidence of technical and administrative capabilities of the applicant company Correspondence with the relevant ministries and agencies

Third step: Issuing feedstock license Necessary correspondence with other entities including the Ministry of petroleum, Ministry of Industry, Mine and Trade Bringing up the project report ( financial/ technical capability of Investor) at the NPC Board of Directors and obtaining the necessary approvals issuing primary agreement of the project to Planning Deputy of Ministry of Petroleum issuing Feedstock license of the project by Planning Deputy of Ministry of Petroleum with specified time validity

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Complexes

ProjectsProjects enroute the Ethylene pipeline

Transferred Projects of the 6th Development Plan

Future Expansion RegionsSpecial Economic Zones

Geographical Scope of Petrochemical Projects and Complexes in Iran

The existing hub for the petrochemical industry

Mahshahr Assaluyeh

Other areas Central Ethylene Pipeline The ongoing projects within the country

West Ethylene Pipeline Complexes under operation in the country

The future hub for the petrochemical industry

Chabahar Parsian Qeshm Jask Lavan Mahshahr development Assaluyeh development

Iran geography is ready

to develop the petrochemical

industry

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Parsian

Mokran

AzerbaijanArmenia

Turkey

Chaharmahal &Bakhtiari

Kohgilluye & Boyer-ahmad

Khuzestan

Kerman

Hormozgan

Fars

Bushehr

Southern Khorasan

Razavi Khorasan

Turkmenistan

Afghanistan

Pakistan

Northern Khorasan

Yazd

Caspian Sea

Isfahan

Lorestan

Ilam

Semnan

Mazandaran

Golestan

Gilan

Tehran

Qom

Kermanshah

Qazvin

Hamedan Markazi

Ardabil

East Azarbaijan

Western Azarbaijan

Kordestan

Iraq

Chabahar

Sistan & Baluchestan

12+1 Complexes 25 Projects

1 Transferred Projects of the 6th Development Plan

20+1 Complexes 7 Projects

1 Transferred Projects of the 6th Development Plan

Qeshm

Assaluyeh

Mahshahr

Persian Gulf Oman Sea

Kharg

Fateh Kimia

SirafKaveh

Abadan

Iran Carbon

Andimeshk

Dehloran

Ilam

Kordestan

Shazand

Di Aria Polymer

Ghaed Basir

Petro RamshehLorestan

IsfahanBroujenLordegan

Shiraz

Estahban

DarabFasa

Jahrom

Firoozabad

Dehdasht

Gachsaran

Mamasani

Kazeroon

Genaveh Dashtestan

Kerman

Fajr-e Kerman

Zanjan

Hegmataneh

Bistoon

Kermanshah

Ibne Sina Hamedan

Golestan

Khorasan

Mahabad

Urmia

Tabriz Ardabil

Pardis Azarbaijan

Polynar

Miandoab

Mahanshimi Zagros Kermanshah Polymer

Masjid Soleiman

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Allocate land to qualified

applicants after evaluation

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Investment Opportunities in Petrochemical Industry

1 Olefin /Aromatics Bushehr/Siraf

P-Xylene 796

2,598

O-Xylene 97 Naphtha 2,000 KT/Y

Phthalic Anhydride 100

Benzene 382

Styrene 750

LPG 82 Ethane 1,100 KT/Y

Heavy Aromatics 32

Raffinate 344

Ethylene 1000

Propylene 75

C4 Cut 32 NG-Fule 0.50 MMm3/d

Pyrolysis Gasoline 65

Fule Oil 5

Sum 3,760

2 Benzene Chain Khouzestan/Mahshahr

Cyclohexane 150

522

Benzene 140

KT/YCaprolactam 70 Ammonia 56

Adipic Acid 70 Sulfuric Acid 52

Ammonium Sulfate 166 NG-Fule 0.01 MMm3/d

Sum 456

3 Methionine Khouzestan/Mahshahr

Methionine 100

215

Propylene 65

KT/YSudium Sulfate 105 Sulfuric Acid 83

Acroleine 55 Methyl Mercaptan 45

Sum 260 24

No Project Location Products Capacity (KT/Y) Name Amount

Feed & Fuel

Unit

Total EstimatedInvestment

(Million US $)

(Table No.1)

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Investment Opportunities in Petrochemical Industry

No Project Location Products Capacity (KT/Y) Name Amount

Feed & Fuel

Unit


(Million US $)

4 Ammonia /Urea Hormozgan/Jask

Ammonia 680

451 Natural Gas 2.20 MM m3/dUrea 1075

Sum 1,755

5 3rd PTA/PET (Under Study)

PTA 500

914

P-Xylene 330KT/Y

PET-Bottle 500 MEG 175

Sum 1,000 NG-Fule 0.30 MM m3/d

6 MMA/PMMA (Under Study)

Formaldehyde 240

976

Methanol 200 KT/Y

MMA 250

PMMA 30 NG-Fule 0.35 MM m3/d

Sum 520

7 Phenol /Acetone (Under Study)

Phenol 300

350

Benzene 272KT/Y

Acetone 185 Propylene 154

Sum 485

8 Centeralized UtilityPlant

Hormozgan/Parsian SpecialZone

Steam

(Under Study)

Power

Water

Air

Industrial Gas

9 Centeralized UtilityPlant

Hormozgan/Qeshem freetrade Zone

Steam

(Under Study)

Power

Water

Air

Industrial Gas

(Table No.1)

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Petrochemical Projects (Requiring Finance Facilities)

No Project LocationOwner Products Capacity (KT/Y) Name Amount

Feed & Fuel

Unit


(Million US $)

1 Ammonia/Urea

Kermanshah Petrochemical Industry Co.

Kermanshah/Harsin

Ammonia 396378

Natural Gas 1.17 MM m3/dUrea 660

Sum 1,056 378

GTPP/GTPX/GTP/GTO

2 GTPP Fateh Kimia Co. Bushehr/DayyerPort

Methanol 1,650

1,437 Natural Gas 4.70 MM m3/d

Propylene 465

Polypropylene 450

Ethylene 20


LPG 36

Sum 2,799

3 GTPP Ardebil

Petrochemical Co.

Ardebil

Methanol 1650


Propylene 465

Polypropylene 450

Ethylene 20


LPG 36

Sum 2,799

4 GTPP Kerman

petrochemical Complex Co.

Kerman/Baft

Methanol 1650


Propylene 465

Polypropylene 450

Ethylene 20


LPG 36

Sum 2,799

(Table No.2)

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Feed & Fuel

Unit


(Million US $)

5 GTO Fajr Kerman

Petrochemical Industry Co.

Kerman

Methanol 1000

983 Natural Gas 3.21 MM m3/d

Propylene 236

Ethylene 156

EPDM 50

EVA 120

Polypropylene 240

Surplus Hydrocarbon 35

Sum 1,837

6 GTO Mahan Shimi Zagros

Islam Abad-eGharb

Methanol 1,850


Ethylene 285

Propylene 460

HDPE 280

Polypropylene 450

C4 Cut 33

Light Cut 40

Sum 3,398

7 GTPXQeshm Oil,Gas & Petrochem-

ical

Hormozgan/Qeshm

Methanol 1,000


Propylene 170


LPG 22

Acetic Acid 300

Formaldehyde 450

Para Formaldehyde 450

Sum 2,499

(Table No.2)

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Feed & Fuel

Unit


(Million US $)

8 GTPP Kaveh Methane Qeshm

Hormozgan/Qeshm

Methanol 1,000


Propylene 300

Polypropylene 300


LPG 22

Formaldehyde 100

Sum 1,829

9 GTPP

QESHM In-ternational

Petrochemical Industry Co.

Hormozgan/Qeshm

Methanol 1,650


Propylene 465

Polypropylene 450

Ethylene 20


LPG 36

Sum 2,799

10 GTPP Tose Petro Mofid

Hormozgan/Qeshm

Methanol 1,650


Propylene 465

Polypropylene 450

Ethylene 20


LPG 36

Sum 2,799

(Table No.2)

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Feed & Fuel

Unit


(Million US $)

11 GTPP Rahpooyan Asr Khavarmianeh Hormozgan/Jask

Methanol 1,650


Propylene 465Polypropylene 450

Ethylene 20Pyrolysis Gasoline 178

LPG 36Sum 2,799

12 GTO Petro Saman Zagros Ilam/Mehran

Methanol 1,850


Propylene 350Ethylene 328HDPE 320

Propylene oxide 100Propylene glycol 25

Polyol 90Acrylonitrile 130Acrylic Acid 100

Ammonium sulfate 16Acetonitrile 4

SAP 60C4 Cut 11C5

+ Cut 4Sum 3,728

(Table No.2)

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13 GTO Seraj Gostaran Rejal

Bushehr/DeylamPort

Methanol 1,650


Propylene 305

Ethylene 290

LLDPE 300

Polypropylene 300

NAFTA 90

LPG 45

Sum 2,935

14 GTP Tadbir Energy Eram

Kohgloye & boyer-ahmad/Gachsaran

LPG 450


Propylene 120


LPG 18

Sum 636

GTPP/GTPX/GTP/GTO 33,656 17,698

Olefines

15 Olefin -3 Ahdaf Invest-ment Bushehr/Kangan

Ethylene 1,000

963 Ethane 1,300 KT/Y

HDPE 300

MDPE 350

MEG 555

Sum 2,205

Olefines 2,205 963

Other Projects

16 MTPPPetrochemical Research &

Technology Co.Assaluyeh

Propylene 120

258 Methanol 460 KT/Y

Polypropylene 120


LPG 18

Sum 306



Feed & Fuel

Unit


(Million US $)

(Table No.2)

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17 Methanol toFormalin Arta Energy Ardebil/ Namin

Methanol 200

16 Natural Gas 1.37 MM m3/dFormalin 283

Sum 483

18 PP Alvand Petro-chemical Co. Hamedan/Malayer

Polypropylene 180127 Propylene 130 KT/Y

Sum 180

19 Acrylats chain Romak Energy Saramad Co.

Khouzestan/Mahshahr

Methanol 450


Normal Butanol 20

Isobutanol 12

Acrylic Acid 80

Acrylic Acid 20

Butyl acrylate 97

2EH 40


LPG 12

Sum 762

20 LABFarid Gostaresh

International Investment

Khouzestan/Ar-vand Free Zone

Light Cut 188

460

Kerosene 25 000, bbl/dayHeavy Naphtha 321

Raffinate 479

LAB 125

Benzene 48 KT/YHAB 16

Sum 1,129

Other Projects 2,860 1,642

Total Petrochemical Projects 39,777 20,681

Upstream projects

21 NGL- 3100 Oil Industry Investment Co. Ilam/Dehloran

Natural Gas 1,041

1,500 Rich Gas 1,841 KT/YC2+ 800

Sum 1,841



Feed & Fuel

Unit


(Million US $)

(Table No.2)

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22 NGL- 3200Persian Gulf

Petrochemical Industrial Co.

Khouzestan/Mahshahr

Natural Gas 1,758

1,900 Rich Gas 3,550 KT/YC2+ 1,792

Sum 3,550

23Ethane Re-

covery-SouthPars Phase 13

Petro Palayesh Kangan Bushehr/Kangan

Natural Gas 17,779

1,027

Rich Gas 21,243 KT/YEthane 1,774

Propane 1,030

Butane 524

Gas Fuel 1.53 MM m3/d C5+ 214

Sum 21,321

24 2nd BidbolandPersian Gulf

Petrochemical Industrial Co.

Khouzestan/Bid-boland

Natural Gas 10,339

3,045


C3+ 1895

Gas Fuel 2.40 MM m3/dSum 13,730

25Ethane Re-

covery-parsian1&2 Refinery

Parsian Sepehr Bushehr/As-saluyeh

Natural Gas 16,972

971


Propane 661

Butane 446

Gas Fuel 1.47 MM m3/dC5+ 1048

Sum 20,467

26 NGL-2300 Amir Kabir Pet-rochemical Co. Khouzestan/Marun

Natural Gas 691

604 Rich Gas 1,395 KT/YC2+ 704

Sum 1,395

27 NGL-1800/2400

Bandar Imam Petrochemical

Co.

Khouzestan/Mahshahr

Natural Gas 4,563

1,933 Rich Gas 6,153 KT/YC2+ 1,590

Sum 6,153

Upstream projects 15,314 10,980

Total Projects 31,661



Feed & Fuel

Unit


(Million US $)

(Table No.2)

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Access to informationQuestions and requests for information should be directed through the National Petrochemical Company, Investment Directorate. If you have any questions or need more information, do not hesitate to contact the Investment Directorate via email: [email protected]. All information sent by the applicants will be properly protected by National Petrochemical Company.

Liaison of investment

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Published by: NPC PR Dept.General Manager of Public Relations: Reza KhalajProject Manager & Head of Publications: Fahimeh AbdiArt Director: Kambiz KhosraviExperts(Alphabetical Order): Khosro Afrouzeh, Saied Afshari, Hossein Alimorad, Hesam Bloukat, Fatemeh Hamidi Farahani, Mohammad Maghareh, Mohammad Amin Garmsiri, Homa Mehraie Sedgh, Ali Soleimani Rouzbehani & Akram Vakili

Public Relations

No.144, North Sheikh Bahaei Blvd., Molla Sadra Ave., Tehran, Iran

P.O.Box: 19395-6896 Tel: (+9821) 88059834Fax: (+9821) 88059835

www.nipc.ir

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