Iran’s Mobin Petrochemical shutdown affects downstream methanol plants
Iran’s Mobin Petrochemical shutdown affects downstream methanol plants
Mobin Petrochemical Company has reportedly shut down its refinery complex in Asaluyeh, Iran on 26 May 2021 after a flare occurred at the natural gas pipeline. It is uncertain on how long the company would take to restart the complex, which affected productions at five (5) downstream methanol plants that depend on Mobin Petrochemical for gas feeds.
These methanol plants are:
|
Company |
Location |
Product |
Capacity (ton/year) |
Status |
|
Marjan Petrochemical |
Asaluyeh |
Methanol |
1,650,000 |
Unknown |
|
Kimiya Petrochemical |
Asaluyeh |
Methanol |
1,650,000 |
Unknown |
|
Bushehr petrochemical |
Asaluyeh |
Methanol |
1,650,000 |
Unknown |
|
Zagros Petrochemical |
Asaluyeh |
Methanol |
3,300,000 |
Force Majeure |
|
Sabalan Petrochemical |
Asaluyeh |
Methanol |
1,600,000 |
Unknown |
Among these five methanol operators, only Zagros Petrochemical has sent an official notification to its customers declaring the force majeure due to the shutdown at the upstream Mobin Petrochemical’s refinery complex, while other plants have yet to confirm the operation status. It is important to note that Sabalan Petrochemical’s 1.6 million tons/year methanol unit is currently under trial production. The company initially planned to start a commercial run in June.
Methanol is used in the methanol-to-olefins conversion process that produces ethylene and propylene monomers.
Methanol futures contracts in China surges visibly after the news, though PP and PE buyers retain a calm stance to monitor further development after news that Mobin Petrochemical might take only a few days to resume the pipeline operation, keeping the impact at minimal levels.
**Image source: Limam Trading