News / Energy

Iran, China ink tech confidentiality deal

Monday, 01 June 2015 10:30 AM [ Last Update: Tuesday, 02 June 2015 4:15 AM ]

Methanol 6 of Zagros petrochemical unit in Iran's Assaluyeh

Iran has signed a non-disclosure agreement with China for transfer of technology to produce propylene from methanol, deputy head of National Petrochemical Company (NPC) Mohammad Hassan Payvandi said on Monday.

Propylene, a byproduct of oil refining and natural gas processing, is the most important raw material in the petrochemical industry after ethylene and is used for production of other organic chemicals.

Payvandi described propylene as perennially valuable as “gold”, saying Iran is best positioned to have the “pulse” of the global market for the substance as well as methanol in its hand.

Iran is already the biggest producer of methanol, with the volume set to grow even further as new projects are coming on stream.

“In any case, we will become a methanol giant; so this is a good chance to work on the technology for converting methanol to propylene,” he said.

Declines in the prices of methanol have sparked concerns and criticism from some quarters about economic sense of the project.

Payvand brushed aside those assessments, saying the Chinese will probably need to import methanol for years to come while the economy of propylene and its subsidiary components is tied to methanol.

“There are massive capacities being created in China. If it had had no economic justification, the Chinese would have not invested in the sector at this level.”

Payvandi said with the transfer of the propylene technology, Iran will have also access to many downstream products such as acetone, phenol and propylene oxide.

Iran is building the world’s largest methanol plant which the country is touting as a rival to US shale gas.

The Kaveh mega methanol project, being implemented in the Persian Gulf city of Bandar Dayyer, is 70% complete, Payvandi said in February.

Iran hopes to raise its methanol production capacity to 25 million tons per year in the next five years and establish itself as the biggest supplier of the product.

HB/HB

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.ir