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PGPIC CEO: Over $20 Billion Invested in Petchem Projects

PGPIC CEO: Over $20 Billion Invested in Petchem Projects
(Thursday, December 28, 2023) 15:53

TEHRAN (NIPNA) -- During the Petrochemical Industry Investment and Financial Supply Conference, Abdulali Ali Askari, the CEO of Persian Gulf Petrochemical Industries Company (PGPIC), announced that more than 30 projects, with a staggering investment of over $20 billion, are actively underway within the holding.

Addressing the attendees, Askari highlighted the establishment of downstream parks as a pivotal strategy of the company, inviting interested investors to participate in these initiatives by utilizing the Project Fund to secure capital.

"The investment in the petrochemical industry is revolutionary, shaping the future. Hence, our nation's petrochemical industry seriously prioritizes attracting investments and financial sourcing," asserted Askari, emphasizing the industry's crucial role in national development.

Regarding capital sourcing strategies, Askari outlined three fundamental principles: capital acquisition is derived directly from the holding's domestic resources and indirectly from monetary, financial markets, and capital markets. Furthermore, the holding maximizes the utilization of internal capacities to secure financial backing.

Askari also highlighted recent financial innovations, citing the issuance of $200 million in foreign exchange Murabaha bonds through Bank Mellat—a groundbreaking move in Iran's history. These funds will be allocated to extinguish flaring gases at PGPIC’s Bidboland Gas Refinery.

Speaking further on ongoing projects, Askari reiterated the 30 initiatives with a $20 billion investment, emphasizing the downstream park creation strategy. He specifically mentioned plans for a Methanol Park to utilize 2 million tons of domestically produced methanol with high efficiency, while hinting at additional strategies to enhance methanol's profitability within the company's agenda.

Wrapping up the conference, the CEO hinted at the near-future debut of the Arvand and Bandar Imam Petrochemical companies' stock offerings in the capital market, signaling further expansion and potential investment opportunities in the sector.

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