Tecnimont and Nargan bid Eur 630 million ($751 million) for the engineering, procurement and construction (EPC) contract to build the two identical plants in early September at Mahabad in West Azerbaijan province and Khorramabad in Luristan province.

The plants are to each have capacity of 300,000 tonnes a year of HDPE and LDPE. Bakhtar is building them along the route of the Western olefins pipeline, which will supply feedstock from the olefins 11 project in Assaluyeh.

The two other bidders were unable to submit their bids for the project when their technology licensor, the UK’s BP-owned Innovene, pulled out of Iran. Innovene decided against an involvement in Iran as it would harm its interests in the US market.