Despite US ban on petrochemical imports from Iran, the first petrochemical consignment will be dispatched to Belgium next week, an official at Jam Petrochemical Complex said, IRNA reported. A consignment of linear low density polyethylene (LLDPE), measuring 2,000 tons with a total value of over $2 million, will be shipped to Belgium next week, Mohsen Farahi, sales and marketing manager of Jam company said Saturday.
The company has also held negotiations with two Turkish companies interested in Iran’s petrochemical industry, during the 24th International Istanbul Plastics Industry Fair, Plast Eurasia 2014, held in the first week of December.
Jam is the country’s fifth largest petrochemical producer. Its olefin unit is the biggest, having a production capacity of 1.3 million tons of ethylene and 306,000 tons of propylene per annum.
Iran exported more than 7.8 million tons of petrochemicals worth more than $5.1 billion in the six months ending September 22. It produced 40 million tons of petrochemicals in the last calendar year (ended March 20), with $9 billion worth of exports.
Iran has significantly expanded its petrochemical production over the past few years. Petrochemical exports are anticipated to increase to $12 billion this year. Under the sanctions regime, countries have been prevented from buying Iran’s petrochemicals in the past few years. Transferring payments for sales and securing insurance for exports remain the biggest hindrance for petrochemical companies.
The US imposed sanctions on Iran to curb the country’s nuclear program. The ban was temporarily lifted last year following breakthroughs in nuclear talks between Iran and the P5+1 group of world powers (five permanent members of the UN Security Council, namely United States, Russia, China, United Kingdom, and France, plus Germany). The relaxation includes suspending an EU insurance and reinsurance ban that barred most international tanker owners from getting coverage to carry Iranian oil. Under the agreement governing the talks, insurers can underwrite ships transporting Iranian goods and European and US companies can again purchase Iranian petrochemicals. Iran and the P5+1 group are negotiating to reach a final agreement by June.
