Iran is expected to become the world's biggest methanol producer as Kaveh mega methanol project, touted as the world's largest methanol unit and a rival to US shale gas, is expected to come online by 2016
The project, which has seen a physical progress of 75 percent, is being implemented in Dayyer, a Persian Gulf port in Bushehr province, and is funded by a consortium of Iranian banks comprising Tejarat, Mellat and Industry and Mine, Shana reported.
The plant is envisaged to process 7,000 tons/day (or two million tons of methanol per annum) of A-A grade methanol.
Earlier in February, deputy head of Iran's National Petrochemical Company (NPC) Mohammad Hassan Peyvandi said the plant's first phase will come online by August while it will become fully operational in 2016.
"Given the high capacity of this project, there is good potential for the development of downstream industries," he added.
Engineering, license and procurement services for the project have been provided by Switzerland's Casale SA and Iran's Petrochemical Industries Design and Engineering Company (PIDEC(.
Iran is planning to raise methanol output to 25mt/y within the next five years to gain a foothold in international market as the biggest supplier of the product.
Tipped as an alternative fuel in ships, the fuel is already used in light aircraft and racing cars and global demand is rising.
Methanol is seen as a green fuel being more abundant and cheaper than diesel. It is even preferred over liquefied natural gas (LNG).
Iran currently has a capacity to produce 60 million tons of petrochemicals and this figure is expected to reach 180 million tons in the coming years with a number of projects coming on stream.
Officials say Iran is on course to earn up to $70 billion per year once the projects begin production
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