TEHRAN, Oct. 8 (Xinhua) -- Japan's Sojitz signed a memorandum of understating (MoU) with Iran's National Petrochemical Company (NPC) here on Saturday to carry out studies over construction of a methanol-to-propylene plant in Iran, Petro-Energy Information Network of Iran (SHANA) reported.
Managing Director of the NPC, Marziyeh Shahdaei, and Sojitz's senior representative, Masaru Sato, attended the signing ceremony of the MoU.
Shahdaei, who is also deputy oil minister in petrochemical affairs, said at the ceremony that the project is of crucial importance for Iran given the vast gas reserves it is sitting atop.
Sato said that Sojitz has been active in Iran over the past 50 years and is the first foreign company involved in Iran's petrochemical sector.
Earlier, Managing Director of Iran's Petrochemical Commercial Company International (PCCI), Isa Mashayekhi, told SHANA that the company was in talks with some Japanese and Korean investors for financing Iran's petrochemical projects.
The talks aimed to attract an investment of 520 million euros (586 million U.S. dollars) in petrochemical projects in Iran in the form of usance letter of credit, Mashayekhi was quoted as saying.
A usance letter of credit permits the beneficiary to be paid immediately upon presentation of specified documents or at a future date as established in the sales contract.
Mashayekhi added that his company had initiated talks with the Japanese and Korean investors and Iran's Ministry of Economy and Finance should provide state guarantees to access credit lines from other countries.