Abbas She’ri-Moqaddam added the two projects would be financed through the Oil Stabilization Fund (OSF) and opening of a letter of credit (L/C) in the Bank of Industry and Mine.

He said the two projects would need 428 million euros, of which 30 percent was provided by the bank.

According to the BPC head, Lorestan and Mahabad complexes would produce 300 thousand barrels of linear light polyethylene each.

Iran’s National Petrochemical Co. (NPC) awarded a contract on the linear light polyethylene units in Lorestan and Mahabad to Iranian company of Nargan in partnership with Italy’s Tecnimont.

The 428 million euro deal calls for purchasing technology, providing basic engineering and detailed engineering, supplying equipment, and holding training courses.

According to the agreement, the contract will be put into action in 24 months and Bakhtar Petrochemical Company (BPC) is in charge of implementing and running the project.

She’ri-Moqaddam had already told PIN that Lorestan and Mahabad petrochemical complexes were the affiliates of Bakhtar Petrochemical Company that would be set up along the western ethylene pipeline.

The contract on the two petrochemical plants was signed with Tecnimont in 2005, but the contract was announced null and void as the needed finance was not provided, recalled the managing director.

“Thanks to their vicinity to markets of Iraq, Turkey, Armenia, and Azerbaijan, the two giant Lorestan and Mahabad petrochemical complexes would make a bright future for the downstream industries in the region,” he predicted.

The NPC Managing Director Gholam-Hossein Nejabat announced that the basic engineering design of Lorestan and Mahabad petrochemical complexes would be complete in the next nine months.

He made the statement in the signing ceremony of the two light polyethylene projects, adding that a part of fund would be allocated for the basic engineering.

Nejabat expressed hope the detailed engineering and equipment of the two petrochemical units would be provided as soon as possible.

The NPC head extended his appreciation to lawmakers for following up the two projects, calling for further cooperation.