The implementation of the petro-olefin project of Fanavaran Petrochemical Company in Khuzestan Province has started, managing director of the company said.
“Petro-Olefin Fanavaran Company, whose construction has started after the completion of the feasibility studies, will have an annual production capacity of 1.65 million tons,” Mohammad Javad Badri was also quoted as saying by the Oil Ministry’s news agency Shana.
Located in Mahshahr Special Economic Zone, the plant’s completion will help prevent the sale of raw materials. It will use natural gas as feedstock to produce methanol and then turn it into 280,000 tons of linear light and heavy polyethylene and 450,000 tons of polypropylene annually, along with other products, he added.
Up until 2007, methanol was used only as a chemical, but the completion of methanol value chain gained momentum after methanol to olefin and methanol to propylene projects were accelerated, which have a bigger profit margin.
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.
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 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 automotive industry.
The methanol industry has experienced an explosive growth, primarily in China and the United States, owing to significant developments in shale gas.
Iran is striving to diversify its oil-dependent economy and make better use of its hydrocarbon reserves by producing petrochemicals and other products with higher value-added that can compete in international markets.
The petrochemical sector plays a key role in economic growth, as it creates value-added and reduces oil and gas export, on which the domestic economy has been dependent for decades.
With abundant hydrocarbon resources, rising global challenges to fossil-fuel use, problems associated with CO2 emissions and climate change, and years of sanctions on its oil sector have compelled Iran to play a prominent role in the international petrochemical market.
