Italy’s Techint Group has entered into a EUR 34-million contract with Iran's Ardebil Petrochemical Company under which the Italian engineering and construction firm will help build a propylene plant.

Iran, Italy companies sign €34-mln petchem deal

Iran

TEHRAN, December 20, 2017 – Italy’s Techint Group has entered into a EUR 34-million contract with Iran’s Ardebil Petrochemical Company under which the Italian engineering and construction firm will help build a propylene plant.

The deal was reported by Shana, the Iranian Ministry of Petroleum’s news portal, late on Tuesday.

The project will take the form of gas-to-propylene or gas-to-olefins, and will target a capacity of 500,000 tpy. Techint will designate a licensor and will train local human resources.

The total project cost was named as EUR 1.6 billion by an official from Ardebil Petrochemical Company.

Tuesday’s announcement comes amid a push by the Ministry of Petroleum and National Iranian Oil Company to ensure technology transfer as foreign companies enter the post-sanctions market.

Technint’s previous work in Iran includes projects for the Khangiran gas gathering system and treatment plant, the Mobarakeh Steel Plant and the Arak Refinery.