MOSCOW (MRC) -- Iran's National Petrochemical Company (NPC) has signed a memorandum of understating with Japan's Sojitz for carrying out studies over construction of a methanol to propylene plant in Iran, reported Shana.
Held at the locality of the NPC in Tehran, the signing ceremony of the MoU was attended by Managing Director of the NPC Marziyeh Shahdaei and Masaru Sato, Sojitz's senior representative on Saturday.
Speaking during the ceremony, Marziyeh Shahdaei, who is also deputy petroleum minister in petrochemical affairs, said the project is of crucial importance for Iran given the vast gas reserves it is sitting atop.
Sojitz has been active in Iran over 50 years and is the first foreign company active in Iran's petrochemical sector, said Sato during the meeting.
Sojitz Corporation is a general trading company based in Tokyo, Japan.
It is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects, in Japan and overseas.
Sojitz also invests in various sectors and conducts financing activities. The broad range of sectors in which Sojitz operates includes automobiles, energy, mineral resources, chemicals, foodstuff resources, agricultural and forestry resources, consumer goods, and industrial parks.
As MRC reported earlier, in July 2016, a fresh round of talks between NPC and Linde AG of Germany began over investment and participation in Iran’s most strategic petrochemical complex. Six month after the implementation of Joint Comprehensive Plan of Action (JCPOA), no official agreement was signed with a foreign firm for development, investment attraction of reopening of credit and finance lines in the country’s petchem industries. 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 then.
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.