Dena Petrochemical Complex in Asalouyeh, Bushehr Province, which is currently under construction, has signed a contract worth over $3.7 million with local manufacturers to support domestic production and achieve industrial self-sufficiency, the company’s managing director said.
“The contract includes the construction of more than 2,000 tons of steel structures and grating, which account for a significant part of the project,” Mohammad Ali Karimian was also quoted as saying by the Oil Ministry’s news agency Shana.
The agreement will help prevent the outflow of currency from the country and create sustainable employment, he added.
Dena Petrochemical Complex in the southern Bushehr Province is expected to be completed in 2023, if the required funds are allocated promptly.
The project needs $178 million from the National Development Fund of Iran. If the money is allocated, the complex will come on stream by March 2023.
Despite the outbreak of the coronavirus, work is making progress, albeit with delays.
Built on seven hectares in the Pars Special Economic Zone, Dena Petrochemical Complex is designed to produce 1.65 million tons of methanol per annum. Sepehr Energy Corporation is carrying out the petrochemical project.
Methanol Output
Dena Petrochemical Complex in the southern Bushehr Province is expected to be completed in 2023.
Data from the National Petrochemical Company show Iran accounts for 5% of the world's total methanol production with exports to Iraq, China, the UAE, India and South Korea.
China is the world's largest methanol importer. It has major methanol-to-olefins capacity and imported 10 million tons of methanol in 2019.
Iran is the largest exporter of methanol to the Asian economic giant and supplies about 40% of its annual imports.
In the petrochemical industry, methanol is used to create high-quality chemicals, the most important of which are formaldehyde, acetic acid, MTBE, methyl methacrylate, methyl chloride and methylamines, which are processed to produce other derivatives.
With the launch of new methanol plants, net methanol output capacity has doubled in two years and reached about 12.2 million tons per year.
The global methanol market is expected grow at a significant rate in the coming years, driven mainly by the increasing use of methanol (in the form of fuel and antifreeze agent) in the auto industry. The methanol industry has experienced an explosive growth, primarily in China and the United States, owing to significant developments in shale gas.
Sepehr Energy Corporation operates in the Iranian oil, gas and petrochemical sectors, and endeavors to expand the national financial, technical, economic and social capacities by managing the construction and operation of industrial-economic projects.
It aims to create value and improve profitability by completing the value chain of the energy industry in Iran. The company also operates globally to raise the market share of these industries and facilitate the export of their products worldwide.
Upon the completion of other methanol projects belonging to the Sepehr company, annual methanol production will reach 3.3 million tons in two years.
