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Gasoline Production from Methanol to Aid in Balancing: Minister

Gasoline Production from Methanol to Aid in Balancing: Minister
(Thursday, May 2, 2024) 15:31

TEHRAN (NIPNA) - The Iranian Petroleum Minister announced plans to utilize a portion of the country's methanol production for gasoline output, aiming to enhance value-added activities.

Javad Owji noted that many countries have successfully transitioned from methanol feedstock to gasoline production, leveraging technical expertise readily available in Iran.

The Petroleum Minister made the announcement during a ceremony commemorating the signing of agreements to study development projects across 16 gas fields, highlighting the significance of collaboration with large petrochemical companies.

"We have planned initiatives in petrochemical complexes, especially those producing methanol, to cooperate with national refining and petrochemical companies to produce gasoline," Owji stated, underscoring the potential benefits in balancing gasoline supply and demand.

"In cooperation with the National Petrochemical Company, this desirable development will take place, utilizing our methanol production capacity for gasoline production," he added.

Owji highlighted the ongoing investments by petrochemical companies and holdings in the development of gas fields, which are expected to add significant volumes to the country's gas and oil production capacities in the coming years.

"Utilizing methanol-derived gasoline can help compensate for gasoline deficits, especially considering the decline in methanol prices over the past few years," Owji noted, referencing successful experiences in countries like China.

He also outlined plans for the completion and initiation of numerous projects, both ongoing and new, which are poised to significantly augment the country's oil and gas production capacities, as well as its refining capabilities.

"With the operation of 79 semi-completed projects worth $16 billion and 50 new projects valued at $25 billion, our daily oil production will increase by 300,000 to 400,000 barrels, while our gas production will rise by 35 million cubic meters per day. Additionally, our refining capacity will increase by over 50,000 barrels per day," Owji elaborated.

The Minister expressed optimism about the future prospects of the Iranian petrochemical industry, highlighting the government's commitment to fostering innovation and collaboration to drive growth and prosperity in the sector.

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