Baku, Azerbaijan, Dec. 29
By Fatih Karimov - Trend: An Iranian oil official claims Iranian methanol will compete with US shale gas in the future.
Mohammad Hossein Peivandi, Deputy Director of the National Iranian Petrochemical Company, said importing petrochemical feedstock from Iran and the Middle East than from the US will be more economically justified for European companies, Iran's IRNA news agency reported on Dec. 29.
The Iranian petrochemical market has the advantage of being near to the Gulf and the Indian and the Chinese market, he said.
He added that petrochemical exports rose by 7 percent in the first eight months of the current Iranian fiscal year (March 21-November 21) compared to the past year.
The country's annual petrochemical production capacity stands at 60 million metric tons, he said, adding that the capacity is projected to reach 180 million metric tons in the future.
The US methanol market - riding the wave of low-cost shale-derived feedstocks - is undergoing a renaissance as new projects deliver significant capacity additions.
As in conventional natural gas, shale gas contains primarily methane.
Methanol can be produced from natural gas or coal. In addition to fuel blending, it is used in the production of windscreen washer fluids, recyclable plastic bottles, plywood floors and synthetic fibers.
Importantly, analyst forecast demand to remain strong as more fuel is blended for new applications, such as powering ships.
Edited by CN