Total SA Plans Large Investment in Iran’s Persian Gulf Holding Company

Iran: Total SA, one of the leading France-based oil and gas company operating across Upstream, Refining & Chemicals, and Marketing & Services sectors, is planning to form a strategic alliance in Iran’s Persian Gulf Holding Company. The agreement is expected to be signed by the end of January, 2017. Total S.A. has been studying Iran’s petrochemical sector during the past months and has chosen a project for which a final agreement signed soon. The removal of sanctions against Iran which was succeeded by the implementation of the nuclear deal between Iran and the P5+1, the five permanent members of the Security Council and Germany, is the major reason for attracting Total SA and many other foreign companies to invest in Iran’s industrial sector. Further details of the investment would be disclosed once the agreement between the two bodies has been signed.

TechSci Research depicts that this agreement would aid to the developing market of olefins such as ethylene, propylene, butylene, among others.  The production of olefins would aid growth into the sector of pet coke as pet coke is used to produce large number of olefins, globally. Also, it would enable the company to expand its footprint into pet coke and olefins sector around the globe.

According to the recently published report by TechSci Research, “Global Ethylene Market By End Use, By Region, Competition Forecast and Opportunities, 2011 - 2025”, the global ethylene market is expected to grow at a CAGR of around 11.26% during 2016-2025, on the back of growing demands for flexible packaging materials, disposable items and expanding real estate & construction sector, globally. Increasing awareness among people about package labelling and its advantages, along with production of light weight automobiles and expanding infrastructure sector in developing countries is expected to result in augmented demand for ethylene and its derivatives.