Once again petrochemical players around the world may have access to one of the largest global producer’s material, by easing the Iran’s sanction and unlocking foreign reserves.
By unlocking foreign reserve and loosing restrictions on export of petrochemicals, cars and precious metal for six months, US officials said the deal was worth $7billion to Iran’s fragile economy, which had witnessed rampant inflation and falling real GDP over past two years.
The half-year reprieve was meant to give time to both sides to trash out permanent agreement over Iran’s entitlement to nuclear technology.
With capacity of over million mt of ethylene, Iran is the second largest producer and exporter of petrochemicals in the Middle East after Saudi Arabia. In recent years it has been a major player on the global stage in polyethylene and methanol, exporting almost a1 million mt and 1.5 million mt capacity.
Iran’s petrochemical sector is a major exporter of methanol and polyethylene. Fueled by cheap ethane, its 11 steam crackers give Iran the potential to be a key global force with the capacity to export either east or west. (Platts Special Report)