06 December 2013 06:47 [Source: ICIS news]
SINGAPORE (ICIS)--Iran’s Kharg Petrochemical continues to run its 660,000 tonne/year natural gas-based methanol plant at 70% of capacity because of shortage of feedstock gas, a company source said late on Thursday.
“We do not have a date on when the problem might be resolved,” she said. The shortage of gas started in April.
She clarified the gas supply was not determined by seasonality, where more gas would be used for heating in winter, but because the company uses gas obtained through oil exploration activities, which was inadequate to meet demand.
The production shortage had existed for 6 months, but when coupled with a few other regional outages had caused tight supply and prices to spike in the last two weeks.
Meanwhile, Chinese traders said the company, and the rest of the Iranian companies have not decided on their contractual allotments for next year.
They also said a few Iranian plants may decide to sell all the production on a spot basis instead of contracting production next year.
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