Venezuela and Iran to Jointly Build a $700 Million Methanol Complex

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Researched by Industrial Info Resources (Sugar Land, Texas). Venezuela’s President Hugo Chavez and Iran’s Mahmoud Ahmadinejad have announced plans to build together a petrochemical plant in southern Iran opening up Pakistani and Indian markets to the Latin American country.

According to the Iranian director of planning and development of the country’s petrochemical industry, Mohammad Hassan Peyvandi, the $700 million plant, 51% of which will be owned by the Iranians and 49% by Venezuelans, is to be located in the port city of Assalouveh, Iran. The methanol complex completion is expected by 2011 and once ready, will aim at producing 1.65 million tons of methanol per year. Moreover, Peyvandi assured that Venezuela’s and Iran’s governments are soon to kick off construction of a similar petrochemical plant in the Zigma industrial zone in Venezuela, facilitating the access to the Latin American market for the Iranians.

Reinforcing Venezuelan officials’ determination to create petrochemical industries in their country, Venezuela’s petrochemical company Pequiven has agreed to join with Brazil’s construction company Braskem (NYSE:BAK ) to construct the $5 billion Jose Petrochemical Complex in the Jose Oil Complex in Anzoategui, Venezuela. The construction of this new petrochemical complex, which will produce plastics from crude oil and polypropylene, will rapidly help both countries become exporters of such products and enforce the unity of the South American region. For related news, see related May 01 2007 article - Brazil and Venezuela Join Together for New Petrochemical Complex in Venezuela

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