UNITED24 - Make a charitable donation in support of Ukraine!

Weapons of Mass Destruction (WMD)

Iran Press TV

World's largest methanol plant opened in southern Iran

Iran Press TV

Thursday, 06 August 2020 2:16 PM

Iranian President Hassan Rouhnai has opened the world's largest methanol plant located in an area on the coasts of the on the Persian Gulf as the country pushes ahead with plans to increase output of petrochemical products to offset the impacts of American sanctions on direct sale of crude.

Using a video conference call on Thursday, Rouhani gave the go-ahead for start of work at Kaveh Petrochemical Complex in Bushehr province.

The plant is to produce 7,000 metric tons of grade AA methanol each day, the largest output in the world for a single petchem facility.

The construction of the privately-owned plant has cost nearly $1 billion, said a report by the official IRNA news agency which added that annual production of the refinery would be worth around $400 million.

Iran has used foreign suppliers for a third of machinery and expertise required for building the plant, said IRNA, adding that the sprawling petchem complex, constructed over a 220-hectare piece of land in Deyr County, will need some 6 million cubic meters of natural gas each day as its feedstock.

During the same ceremony on Thursday, Rouhani also ordered the opening of another major methanol production plant in the port of Asaluyeh, Iran's main hub for natural gas refining operations.

The Kimiya Pars Middle East Petrochemical Company will create 700 permanent jobs, said reports by the local media, adding that the facility will feed on 4.5 million cubic meters of natural gas each day.

Annual production for the plant, constructed over four years with an investment of $600 million, is expected to reach 1.65 million tons, or 4,500 tons a day, generating some $300 million in new revenues for the government as the owner of the project.

Another major petchem project opened by Rouhani on Thursday was the polymer catalyst unit at Lorestan Petrochemicals, a refinery located in southwestern Iran.

The IRNA report said the unit has been launched through a $20-million investment and is set to produce 100,000 tons of polymer catalysts each year.

Join the GlobalSecurity.org mailing list