Within the framework of the strategic development and value chain completion document, the CEO of Kharg Petrochemical, Komeil Pourziaei, adopting a new investment approach, avoided continuing the development path based on second methanol and approved its replacement with the advanced combined project “Synthetic Ethanol-Acetic Acid.”
This major decision, based on precise evaluations of current conditions including gas feedstock supply limitations, significant global methanol market recession, and self-sufficiency in domestic production of this product, represents a significant step towards optimizing investment and increasing profitability.
Accordingly, all contracts related to the study and design phase of this new project, including technology acquisition (license), BIM Execution Plan (BEP), and Process Design Package (PDP),have been officially endorsed and its execution phase has commenced.
Economic estimates indicate a 24% internal rate of return (IRR) for this project, and successful negotiations with reputable financial institutions such as Bank Mellat and the National Development Fund have provided strong support for its timely implementation.
This project is expected to soon become the most economical and efficient project completing the country’s methanol value chain within the Kharg Petrochemical Complex.
It is worth mentioning that Kharg Petrochemical recently celebrated its fifty-sixth anniversary of establishment.
