Iran to throw the switch on energy projects after sanctions end
The number of energy projects in Iran could double over five years to nearly 400 once sanctions are gradually lifted, according to Meed Projects.
There are 197 energy projects – ranging from oil and gas to petrochemicals and utilities – under construction or planned representing a US$167 billion opportunity for regional and international companies, according to data from the projects tracking service.
The opportunities will only increase as new projects are added.
For the first time in a decade, international companies are close to re-establishing business relations with Iran, with the energy sector set to play a major role in the country’s revitalisation.
The Dubai-based power provider Full Power Solutions expects its Iranian manufacturing arm, Electro Kavir, to ramp up production once sanctions are removed.
The maker of electrical panels expects to increase operations threefold once sanctions fall.
The electrical panels, or breakers, are the steel boxes that hold all the circuits that distribute power throughout a home – and in Electro Kavir’s case, refineries and petrochemical plants.
“We manufacture 6,600 low- and medium-voltage electrical panels, and we expect to increase three times that [amount] after the sanctions are lifted because of the demand in energy projects,” said Faezeh Fanaei, the managing director of Full Power.
The company has already started receiving interest from international investors and has been approached by several western companies, mostly American and French.
However, Ms Fanaei said that she expected to see more competition crop up as a result of the market opening up.
Ed James, the director of content and analysis at Meed Projects, said that Iran has always represented a large projects opportunity.
“However, it’s only now with the impending lifting of sanctions that international companies have the opportunity to invest in the local projects market.”
Major future projects include the estimated $4.5bn Kish Gas development, the $3.2bn Anahita oil refinery, the $3bn Nalco aluminium complex and the $2.5bn Jask oil terminal project.
Follow The National’s Business section on Twitter
Updated: August 3, 2015 04:00 AM