The new plant will be located at the Marun petrochemical complex, also referred to as the olefins 7 project. NPC has a 45 per cent share in the joint venture, with DSM and Poushineh holding 35 per cent and 20 per cent respectively. Fixed capital in the plant is $200 million, with another $40 million not fixed.

Germany’s Lurgiand the local Sazeh Consultantsare engineering, procurement and construction (EPC) contractors on the scheme.

The deal represents NPC’s first co-operation with Saudi Basic Industries Corporation (Sabic), which in April acquired a majority stake in DSM (MEED 5:4:02). Sabic and NPC are also carrying out a joint feasibility for the olefins 11 project, which is understood to be at an advanced stage.