The world’s largest chemicals company BASF plans to invest in a $4bn project to build plants in southern Iran, according to media reports from the Middle East country.

The Germany-based group is looking to establish a production base in “Parsian Mineral Industries Special Zone” and secure 60 per cent of the project cost, according to the Shana news agency.

BASF has not released an announcement on the panned investment.

Speaking to Shana, CEO of Persian Gulf Petrochemicals Industries Company (PGPIC) Adel Nejad-Salim said that the gas, electricity and water supplies needed for the project were already in place.

Parsian Mineral Industries Special Zone is located on Iran’s southwestern Gulf coast.

Iran has the second-largest petrochemicals industry in the Middle East after Saudi Arabia and, as in the GCC, the sector has been built on the back of access to low-cost gas feedstock.

Tehran is hoping to attract significant overseas investment in its petrochemicals sector following the lifting of nuclear related sanctions and the significant volumes of gas feedstock brought on stream by the South Pars Gas Field Development.