Page 48 - Plastics News October 2016
P. 48
Business NEWS
PGPIC signs first financing Royal Dutch Shell
agreement with Marubeni inks preliminary MOU
with Iran’s National
Iran says Japan has agreed to fund the development of some Petrochemical
of its petrochemical projects – a groundbreaking move that
could open the way for similar funding mechanisms for other Royal Dutch Shell signed a preliminary
sectors in the future. Iran’s Ministry of Petroleum announced memorandum of understanding (MOU) with Iran’s
in a statement that a deal has been signed between the National Petrochemical Company for cooperation in
country’s Persian Gulf Petrochemical Industries Company the petrochemical industry, the Iranian oil ministry’s
news agency SHANA reported.
Hans Nijkamp, the head of the department for Iran
affairs at Royal Dutch Shell, said "We believe that
(PGPIC) and Japan’s Marubeni to provide as much as €320 mln we can have joint projects in the petrochemical
for the development of PGPIC’s petrochemical projects. This, field with the National Petrochemical Company
the Ministry added, will be carried out through a mechanism and the signing of the MOU came after months of
known as the Usance Letter of Credit (L/C). negotiations between the two companies.
The L/C permits the beneficiary to be paid immediately upon Marzieh Shahdaei, Iran’s deputy oil minister and
presentation of specified documents or at a future date as CEO of National Petrochemical Company, said that
established in the sales contract. According to (The Islamic Iran plans to expand its petrochemical output from
Republic News Agency) IRNA another deal that envisages the current level of 60 million tons to 160 million
providing PGPIC with an extra €640 million is close to tons by 2025, according to SHANA. Amir-Hossein
finalization and will be signed in the near future. It also said Zamaninia, a fellow Iranian deputy oil minister,
that PGPIC plans to provide an extra US$10 bln for its projects expressed optimism that petrochemical projects
but did not specify where and how the sum is planned to be between the two companies would be launched
provided. A top petrochemical official in Tehran said in June soon.
that discussions are underway with investors from Japan and
South Korea to finance Iran’s petrochemical projects through “With the wisdom that we see in the people
the L/C mechanism. working in our country’s petrochemical industry,
without a doubt the projects of this company will
Isa Mashayekhi, the managing director of Iran's Petrochemical be executed sooner than oil and gas projects,” he
Commercial Company International (PCCI), was quoted by the said, according to SHANA.
media as saying that his company is negotiating with some
Japanese and Korean investors to attract an investment of €520
million for its projects. Mashayekhi added that Iran's Ministry
of Economy and Finance should provide state guarantees to
access credit lines from other countries, Xinhua reported.
PCCI is a subsidiary of PGPIC which is in charge of talks with
international companies for financing petrochemical projects
and attracting investments for PGPIC projects, Xinhua added.
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