Zagros Petrochemical Company and China's Dalian Petrochemical Company have signed a contract on Sunday, based on which the latter will transfer knowhow to build a plant for the conversion of methanol to synthetic ethanol to the Iranian company, the managing director of Zagros Petrochemical Company said.
“The first methanol-to-synthetic ethanol plant in Iran with a production capacity of 300,000 tons will be constructed within 36 months,” Matin Didari was also quoted as saying by the Oil Ministry’s news service.
With this initiative, Zagros Petrochemical Company is taking a major step to complete the value chain of methanol to help reduce the sale of raw materials and increase its revenues, he added.
When the project becomes operational, the country will no longer need to import synthetic ethanol, which is used as industrial feedstock, and can become an exporter of the product.
One of the world's largest methanol producers, Zagros Petrochemical Company aims to further complete its downstream chain and create value-added products from methanol, such as dimethyl ether that is a synthetically produced alternative to diesel for use in compression ignition diesel engines.
Zagros Petrochemical Company was established in 2006 with an annual production capacity of 3.3 million tons of methanol.
Dalian Petrochemical Company researches, develops, produces, processes and sells petrochemical products. The company manufactures lubricating oil, industrial and special oil, as well as additives.
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.
Methanol Value Chain
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.
Didari noted that the construction of a methanol-to-propylene plant in Parsian region and a methanol industrial park in Makran region will begin soon. The projects seek to produce 24 new products.
Data from the National Petrochemical Company show Iran produces 12.2 million tons or methanol per year, accounting for 5% of the world's total methanol production with exports to Iraq, China, the UAE, India and South Korea.
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.
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, Iran seeks to play a prominent role in the international petrochemical market.
