A senior Iranian petrochemical official said more than 24 million metric tons will be added to Iran’s methanol output in less than 5 years, which will transform the country into a benchmark supplier of the item in the global markets.
Mohammad Hassan Peyvandi, deputy managing director of National Petrochemical Company (NPC), said the amount will cause oversupply of the product in global markets, reducing its price dramatically, but, as many analysts say, will become Iran’s trump card turning the country into the item’s kingpin in the market.
Iran could boost its methanol output under the sanctions through four factors: China’s financing of projects in Iran, abundance of coastal lands in the country, low price of natural gas and the transfer of gas-to-methanol technologies prior to the sanctions, said Peyvandi.
He said MTP and MTP units in China are the regular customers of Iran’s methanol. He further said Iran has indigenized polyvinyl methylether (PVM) technology which is used for converting methanol into propylene.
Petvandi said NPC has devised a 120,000 ton propylene production project which can enjoy state funds. Iran has prioritized its petrochemical sector and National Petrochemical Company is legally banned to directly finance petrochemical projects unless they introduce new technologies.
Peyvandi further said NPC will source financing for the project from its earnings. It holds 31% of Persian Gulf Holding‘s stocks.