Option of construction of methanol plant by Petkim in Iran is more realistic: SOCAR

"Petkim and the Iranian company have signed memorandum to build new facilities. The talks are at an early stage," a source said.

Chairman of the Turcas Board of Directors Erdal Aksoy said earlier Turkish company Petkim and the National Petrochemical Company of Iran have signed a contract on the construction of the plant. A joint venture with equal shares (50 to 50 per cent) will be built for this purpose.

The capacity of methanol plant will be 1.6 million tons per year and polyethylene 300,000 tons per year.

Holding is also interested in realization of projects in other countries. Talks are underway with Egypt and Saudi Arabia, Aksoy said.

Iran has a very good business proposal for joint consideration and implementation of the project, a SOCAR source said. "There are several options, but I believe Iran's option is more realistic."

The construction of plant in Iran is attributed to low cost of raw materials (gas) in the Gulf countries and low-cost electricity.

SOCAR/Turcas/Injaz/ Projects has acquired 51% share of Petkim chemical concern at $2.04bln. Turkey currently imports 70-75 percent of chemical products, but SOCAR/Turcas/Injaz investments in development of Petkim enables to reduce import of products up to 30 percent.

/Trend Capital/