LONDON - The plan to build a petrochemical plant near the Iranian city of Firouzabad had everything usually needed to get a project off the ground: approval from the nation’s top authority, funding from the Revolutionary Guards and plentiful gas feedstock.
The fate of the Firouzabad plant is not unique in Iran, even though the nation has huge oil and gas reserves and is eager to expand output of downstream products which can more easily evade crippling U.S. sanctions on its vital energy industry. Fasa Petrochemical Company and Darab Petrochemical Company, which each own 30% in Firouzabad Petrochemical Company, did not respond to requests for comment.
The government, which worries about falling national groundwater levels, wants the $500 million plant moved to the coast where desalinated water could be used. But local officials and a senior cleric have objected and the project has stalled. The delay in the Firouzabad plant has had knock on effects, disrupting four other projects that aimed to use the facility’s output of ethylene, an ingredient used to make products such as polyester resins and adhesives. Those offtake plants would also have added to strains on the region’s scant water reserves.
Pray to Allah for rain