The construction of Dena Petrochemical Complex in Asalouyeh, southern Bushehr Province, has registered 75% progress and is expected to be completed in 2023, managing director of Dena Petrochemical Industries, a subsidiary of Sepehr Energy Corporation, said.
“Being built on seven hectares in the Pars Special Economic Zone, Dena Petrochemical Plant is designed to produce 1.7 million tons of methanol per annum," Mohammad Ali Karimian was also quoted as saying by the Oil Ministry’s news agency Shana.
The project needs $178 million from the National Development Fund of Iran.
A contract worth $4 million was signed with local manufacturers in 2020 to support domestic production and achieve industrial self-sufficiency, he added.
Karimian noted that 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.
“The agreement will help prevent the outflow of currency from the country and create sustainable employment,” he said.
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 to 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 of the Sepehr Energy Corporation, annual methanol production will reach 3.3 million tons in two years.
