Iran to Boost Methanol Output to 28 Million Tonnes, Zagros CEO Says

Iran to Boost Methanol Output to 28 Million Tonnes, Zagros CEO Says
(Monday, April 28, 2025) 10:10

TEHRAN (NIPNA) – Iran plans to increase its methanol production capacity to 28 million tonnes annually within the next few years, Matin Didari, CEO of Zagros Petrochemical Company, said on Sunday.

Speaking at the Third Iran-Africa Cooperation Summit, Didari emphasized Iran's growing role in the global methanol market and highlighted extensive investment opportunities across the methanol value chain.

Zagros Petrochemical, he noted, operates the world's largest single-site methanol production complex with an annual capacity of 3.93 million tonnes.

According to Didari, global methanol production capacity is expected to reach 194 million tonnes by 2025 and climb to 208 million tonnes by 2028. However, actual production utilization currently stands at about 64%, meaning global methanol output is projected to reach around 125 million tonnes in 2025 and 139-140 million tonnes by 2028.

Iran currently operates 11 methanol plants with a combined nominal capacity of 17.2 million tonnes per year. Ongoing projects are expected to raise this figure to approximately 28 million tonnes in the coming years, Didari said.

He also pointed to cooperation opportunities between Iran and African countries, citing Zagros Petrochemical’s readiness to expand international partnerships.

Opportunities in Methanol Derivatives and Hydrogen Production

Didari underlined Iran's high potential in downstream methanol industries, where up to 28 key products — including formaldehydes, acetic acid, MTBE, DME, MTO, resins, PET, and silicones — can be produced. These derivatives serve as critical building blocks across various industrial sectors, offering significant investment opportunities, he said.

He explained that about 64% of global methanol production currently comes from coal, primarily in China, while 23% is derived from natural gas and 13% from other feedstocks. Iran’s advantage in natural gas resources positions it strategically to expand its role in this industry, he added.

New projects with a combined capacity of 843,000 tonnes are underway in Iran’s methanol downstream sector, with over $1.1 billion in investments already committed, Didari said.

He also announced the construction of a new synthetic ethanol plant with a 300,000-tonne annual capacity by Zagros Petrochemical.

Iran Eyes Regional Leadership in Methanol Production

Iran, which holds the world’s third-largest proven natural gas reserves and ranks second in gas production, currently accounts for nearly 10% of global methanol output, Didari said.

He stressed that Iran is well-positioned to become a regional hub for methanol production and downstream industries, creating new opportunities for collaboration, particularly in the production of clean fuels and maritime fuel solutions.

Global trends, such as the adoption of methanol-fueled vessels — with companies like Germany’s Maersk and South Korea’s Hyundai planning to deploy over 380 methanol-powered ships in the next two to three years — also open avenues for joint investment, he noted.

Didari further highlighted the strategic importance of producing hydrogen from methanol, describing it as a key future driver of the energy transition. He affirmed Iran’s readiness to engage in joint ventures and technology development projects in this field.

“We believe that by leveraging our existing capacities in methanol and clean energy, we can make significant strides toward sustainable development and technology transfer,” Didari concluded.

 


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