Market and product

China is planning to fund seven methanol projects currently underway in Iran, according to National Petrochemical (NPC) deputy head Mohammad Hassan Peyvandi.

Peyvandi was quoted by Fars News Agency as saying: "All the existing seven methanol projects will come on-stream after China undertakes financing them."

Petrochemical projects at Lorestan, Mahabad and Sanandaj are among those that will commence operations in 2014 and 2015, Peyvandi said.

He added: "The Methanol projects of Assalouyeh and the projects of Lordegan and Zanjan will also come online soon in future."

Last week, China revealed plans to invest approximately €2bn for the petrochemical project in Iran's southern port city of Bushehr.

Peyvandi stated that the price of methanol will significantly drop in international and domestic markets once the seven methanol projects commence operations.

Iran exports petrochemical products to more than 60 countries primarily in the Far East, Central Asia, South East Asia and Africa.

Earlier this month, Peyvandi claimed that the company seeks to boost its methanol production to ten million tonnes in five years.

He said: "We plan to speed up the development of petrochemical industry with a new approach."

In May, Chinese firms announced plans to provide €470m for the Lordegan petrochemical complex, according to local media reports.

Owned by the Iranian Government, NPC engages in the development and operation of the country's petrochemical sector and is the second largest producer and exporter of petrochemicals in the Middle East.