IHS: Investment in Iran could reap returns
Published by Angharad Lock,
Digital Assistant Editor
Hydrocarbon Engineering,
New analysis from IHS has shown that if sanctions are lifted, a rekindling of foreign investment into Iran’s huge petrochemical sector could result in large rewards for investors willing to assume the relatively high levels of economic and political risk.
IHS has estimated that Iran’s current petrochemical production capacity is approximately 60 million t, and the Iranian petrochemical industry is primarily focused on utilising the country’s huge ethane-rich natural gas resources. The price of ethane gas in Iran is kept low by government mandate, and ethylene production costs are generally comparable to those in Saudi Arabia or North America: amongst the lowest in the world.
Michael Smith, Vice President of Europe, Middle East and Africa at IHS Chemical, said: “If you are a global petrochemical producer looking at Iran for its investment and growth opportunity, and you can forget for a minute about the major business and political risks involved, it presents an attractive opportunity. Major chemical players are champing at the bit to explore the potential that Iran offers, but they will not be doing so haphazardly. These companies are used to operating in risky environments and managing significant risk—it’s the nature of the business, but the reward has to significantly outweigh the risk, which is something they will be assessing very carefully and deliberately.”
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/25082015/ihs-investment-in-iran-could-reap-returns-1299/
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