Iran, French Total in talks to finalize petchem deal
By Trend
The French oil and gas company Total is negotiating to finalize
a deal for investment in Iran’s petrochemical industry, Tasnim news
agency reported.
Iran’s National Petrochemical Company and Total reached a
preliminary agreement last year, for joint construction of a
petrochemical complex with participation of Iran’s private
sector.
If the parties finalize the agreement, a petrochemical complex
including a steam-cracker unit will be manufactured in Iran’s
coastal areas in the Persian Gulf.
The complex will receive ethane, naphtha, liquefied petroleum gas
(LPG) and other liquefied gases as feedstock.
Steam cracker units are facilities, in which a feedstock is
thermally cracked through the use of steam to produce olefins,
including ethylene and propylene.
The complex will also have downstream units to sell its products in
domestic and international markets, according to a MoU which signed
between Total and Iran’s National Petrochemical Company in
2016.
Total also signed a preliminary deal for development of Phase 11 of
South Pars last year, becoming the first Western oil major to sign
an energy agreement after the European Union and the United States
eased sanctions as part of a pact to curb Iran's nuclear
ambitions.
If finalized, Total would operate the project with a 50.1 percent
stake, China's CNPC would own 30 percent through one of its
subsidiaries and Iran's Petropars would have 19.9 percent.
The South Pars Phase 11 project will have a production capacity of
1.8 billion cubic feet per day. The produced gas will be fed into
Iran’s gas network.
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