PSEEZ chief: Parsian zone, exceptional opportunity for petchem investors
By Farzam Vanaki
Parsian Special Economic Energy Zone (PSEEZ) in Iran is unique in the world in term of its facilities and potentials for establishing petrochemical industries as Iran is among the few countries that have abundant oil and gas reserves and access to international markets through the Persian Gulf and the Sea of Oman.
Speaking to Iran Daily on the sidelines of the 23rd Press Exhibition currently underway in Tehran, PSEEZ’S Managing Director Hassan Shahrokhi further said that the zone is located in an area of 10,000 hectares, which makes it bigger than Kish Free Zone in the Persian Gulf, and has a coastline of 14 kilometers.
It is located in the vicinity of Asalouyeh (40 kilometers) in the southern Iranian province of Bushehr and less than 150 kilometers from South Pars Gas Field in the same province, he said.
Shahrokhi noted that the zone has received a permit from Iran’s Oil Ministry and those investing in its petrochemical projects can be assured of receiving about 20 million cubic meters of gas as feedstock.
“The zone is quite prepared for the participation of foreign investors in its projects.”
He said following the implementation in January 2016 of the Joint Comprehensive Plan of Action, which was signed between Iran and P5+1 in July 2015, a large number of companies from Europe, China and India have sent representatives to the zone to learn about its investment opportunities.
Shahrokhi noted that among them are Royal Dutch Shell, French energy giant Total and Germany’s BASF, adding that negotiations with Shell are more serious than talks with the other firms.
“Iran’s National Petrochemical Company is assisting and accompanying us in the negotiations with Shell. The Dutch company plans to build a gas to liquids (GTL) unit in the zone.”
He added the PSEEZ has been designed for the establishment petrochemical industries with capacities of 18 million tons and steel industries with capacities of 4 million tons, setting up a port with a traffic capacity (exporting and importing goods) of 40 million tons and generation of 4,300 megawatts of electricity.
“Currently, four domestic investors are involved in the petrochemical industry, with a financial commitment of investing $10 billion in PSEEZ projects, have purchased land in the zone and begun operations there.”
In addition, he said, the first phase of the project to set up the zone’s port has been handed over to a contractor. “This phase involves expanding the port’s capacity to 9 million tons.”
He hoped that the project will be completed in three years, following which, it will be possible for the zone to export 9 million tons of products and provide port services for the same amount of goods.
“In the power sector, we have also issued a call for investment in a project to generate 500 megawatts of electricity in the zone. Investors of these project will be selected in four months,” he concluded.