Iran’s Kharg Petrochemical runs methanol plant at 40%

09 May 2012 10:13  [Source: ICIS news]

SINGAPORE (ICIS)--Iran-based Kharg Petrochemical is running its 660,000 tonne/year natural gas-based methanol plant on Kharg Island at 40% capacity since 8 May as a result of reduced feedstock supply, a company source said on Wednesday.

The decrease in gas supply was caused by a technical problem, the source said.

The company is able to charter some ships to bring the material to China despite the difficulty of securing marine insurance for shipments from Iran.

The company shipped 45,000 tonnes of methanol to China in April.

“If we reduce [production] to less than 40%, we might be forced to bring forward our maintenance plans originally scheduled for the second half of May,” he said.

Kharg Petrochemical does not have any contract of affreightment (COA) with shipowners, preferring to work on a spot basis.

Other methanol producers in the Middle East include SABIC and National Petrochemical Company.

By: Heng Hui
+65 6780 4359

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