Methanol raw sale is the result of cheap gas price/petrochemicals are looking to increase feed rent

Hedayatullah Khademi, in an interview with Fars news agency’s economic reporter, said: “It is a fact that the more developed countries become, the more energy they use. Now that the amount of energy consumption in our country is high, we must see whether this increase in consumption has been accompanied by an increase in the production and productivity of industries or not. Along with the increase in energy consumption, countries need to turn to the correct use of God-given resources and increase their incomes by completing the value chain.

He said: We should comprehensively examine the issues related to energy consumption in our country. For example, I once raised the issue of why we provide energy at a very cheap price to petrochemical companies and they convert it into methanol and sell it as a raw material.

* Khasulati petrochemical companies are looking for the continuation of feed rent

Khademi added: Methanol is a raw material that we export and later it becomes other derivatives with high added value abroad and is sold to us again at a higher price. Our petrochemical companies must have the ability to convert methanol into its derivatives.

The Chairman of the Board of Directors of the Oil Exploration Company said: If feed and fuel are available to petrochemical companies at reasonable and real prices, these companies will be forced to take steps towards updating their own technologies and go beyond the mere production of methanol and enter the next chain. Unfortunately, there is the fact that cheap feed and fuel has caused petrochemicals not to develop the value chain of this industry and to sell raw materials.

The Chairman of the Board of Directors of the Oil Exploration Operations Company stated: Petrochemical companies are arrogant and have the means to put pressure on the government to determine the feed and fuel rates they want. Unfortunately, when the hand of the government is everywhere in the economy, these problems arise.

Khademi said: Now, private petrochemical companies in the world buy gas from producing countries and convert it into derivatives and sell it. If this process is beneficial for them, it can also be beneficial for Iranian petrochemical companies, but in our country, petrochemical companies enjoy cheap fuel and feed and have no motivation to develop the value chain of this industry.

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