The largest methanol unit in the world, with a production capacity of 7,000 tons per day, has had a progress of 65 percent so far, Tasnim news agency reported Friday.
Kaveh Methanol Chemical Company is constructing its methanol unit in Dayyer Port at the southern Iranian province of Bushehr, with the aim of exporting its entire AA grade methanol output. Due to its high profitability, the National Petrochemical Company (NPC), as legally permitted, insists on buying 20 percent of the unit's share. However, an authorization has not been issued yet in this regard.
The required investment for completion of the project is estimated at 176.4 million euros for essential machineries, and around $1.2 billion for secondary machineries and other equipment. A further 1,000 billion rials ($37.5 million at official exchange rate) has also been earmarked for pre-commissioning, construction of buildings, providing feedstock, installation and other expenses. With an export-oriented view, an exclusive dock for the unit will be built by Iranian contractors.
The availability of relatively cheap feedstock, combined with the methanol demand from Asian countries, contributed to the growth of Iran's economy during the last decade (prior to the 2012 downturn). Thus, further capacity additions are planned in the coming decade to meet the expected increase in domestic demand and also in the demand from Asian countries, mostly from East and Southeast Asia. Currently, Iran accounts for about 10 percent of the world's total methanol production and its industrial exports are available in markets of 159 countries, mainly in Iraq, China, the UAE, India and South Korea. The NPC, Kaveh Glass Industry Group and Public Joint Stock Company are the biggest players in the industry.
