The financing for the Eur 327 million ($319 million) contract to build the 1.35 million-tonne-a-year (t/y) ethane cracker is provided through a multi-source export credit facility lead arranged by Credit Agricole Indosuez (CAI). The facility is part of a $1,000 million credit line extended to four Iranian commercial banks in July 2001 (MEED 10:8:01).

The European export credit agencies providing cover are France’s Coface, Italy’s Sace and NCM of the Netherlands. The package is also guaranteed by the Economy & Finance Ministry.

Technip-Coflexip will apply its own KTI furnace technology for the cracker and carry out engineering, supply of equipment and materials as well as supervision of construction and commissioning. The company completed basic engineering for the project earlier this year under an advanced cash payments system. Engineering work is being carried out at Technip-Coflexip offices in Paris and The Hague.

The company’s project partner, Nargan, will provide engineering and procurement services related to the local portion of equipment and materials.

Jam Petrochemical Company will be in charge of construction, project execution and operations of the olefins 10 facility. Construction of the plant is expected to begin before the end of the year, with completion of the project set for July 2003.

Other units under construction at olefins 10 include a polypropylene (PP) plant, a linear low density polyethylene (LLDPE) plant and a monoethylene glycol (MEG) plant, all being carried out by Italy’s Tecnimontwith local partners. Germany’s Krupp Uhdehas the contract to build a high density polyethylene (HDPE) unit with the local Sazeh Consultants (MEED 26:1:01).

Feedstock for olefins 10 will be sourced from the aromatics 4 plant, under construction nearby by a Japanese consortium led by Japan’s Toyo Engineering Corporation(MEED 28:7:00).

Technip and Nargan are also working on a contract to build an ethane cracker at the olefins 9 petrochemical plant in Bandar Assaluyeh. The companies signed up for the deal in September 2000 (MEED 28:12:01; 29:9:00).