Chinese investors have opened multi-million euro-denominated letters of credit (L/Cs) for two petrochemical plants in Iran.

More may follow, as Iran pursues an ambitious strategy to complete the construction of 60 unfinished petrochemical plants and build new facilities.

L/C commitments

The L/Cs, with a value in excess of EUR 350 million, have been opened for the Masjed Soleiman Petrochemical Complex and the Sabalan Methanol Unit.

Specifically, the Chinese investments are financing petrochemical units that convert methanol to propylene.

Unfinished projects

Earlier this year, National Iranian Petrochemical Company's (NIPC's) managing director, Abbas Sheri Moqaddam, said Iran needs US$31 billion to complete 60 unfinished petrochemical projects.

So far, just US$5 billion has been committed to these projects.

Chinese interest

Over the next eight to ten years, NIPC is planning for investments of US$74 billion in Iran's petrochemical sector.

Earlier this year, Iran announced that Chinese firms had already committed to a EUR 470 million investment in a petrochemical plant in southern Iran and undisclosed sums in at least another three such facilities.

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