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Kaveh Methanol Complex Starts Production

Kaveh Methanol Complex in the Persian Gulf port city of Bandar Dayyer, Bushehr Province, has started methanol production, the National Petrochemical Company’s director for projects said on Sunday.

“The complex has completed trial production, with its output reaching 2,000 tons,” Ali Mohammad Bosaqzadeh, who accompanied NPC’s Managing Director Reza Norouz-Zadeh in a visit to Kaveh plant, was quoted as saying by the NPC’s news agency NIPNA.

Referring to the plant’s daily methanol output capacity of 7,000 tons, or 3.2 million tons per annum, once it is fully operational, Bosaqzadeh noted that Kaveh Methanol Complex is the largest of its kind in Iran and one of the biggest in the world.

He added that the pure oxygen production unit of the complex, one of methanol’s needed feedstock, is due to start production in a few days.

“The private Kaveh Glass Industry Group, that accounts for 60% of Iran’s glass output, is the main shareholder of the methanol company, which is aimed at the production of methanol, ammonia, urea and polymers,” he said.

Expressing satisfaction with the plant’s progress rate of 99%, Bosaqzadeh said Kaveh has provided suitable infrastructures, such as four water desalination units and two private jetties for the export, import and transfer of solid and liquid products. 

Kaveh also boasts the largest humidifying unit in the world, with a capacity of over 1,000 tons. The unit converts gas to steam.

  Cooperation With Casale

The NPC official noted that the privately-owned Swiss company Casale has maintained ties with Iran during and after sanctions in methanol and ammonia industries.

Bosaqzadeh added that after the ammonia unit of Razi Petrochemical Company and Kaveh Methanol Company, Bushehr Petrochemical Complex will also use the production license of Casale, which is expected to become indigenized in the near future.

Marjan Petrochemical Complex is also designed to produce 1.65 million tons of methanol once it becomes fully operational. Officials say Iran’s total methanol production capacity will double following the launch of Marjan, Bushehr and Kaveh plans, exceeding 10 million tons per year and the country's petrochem output will surpass 63 million tons.

Marjan—aka 7th Methanol Project—in Phase 2 of South Pars in Asalouyeh will become operational in summer.

The Petrochemical Research and Technology Company of Iran signed a memorandum of understanding last year with France's Air Liquide Engineering and Construction Company on transferring state-of-the-art technology to convert methanol to propylene. 

Plans call for increasing the total production of propylene to 4 million tons per annum in 2021 and 8 million tons within the next decade.