Sabalan Petrochemical Production Capacity Reduced Due to Gas and Oxygen Shortage

According to an exclusive report by Energy Press, while various companies are talking about their unprofitability due to energy imbalance, Reza Karimi, CEO of Sabalan Petrochemical, also said about the problems of gas feed, oxygen and water that this petrochemical company is facing: “In terms of production, Sabalan has been operating below capacity for some time (about two years) due to a shortage of feed, especially oxygen, and at some points, a shortage of water. Technically, our company has the potential to operate even above 100% of its nominal capacity. At a time when we had enough oxygen, the plant’s capacity reached 107%.
He added: “However, due to the increase in the activity of other methanol units such as Damavand and the allocation of oxygen to them, our capacity has decreased and we have been operating below actual capacity for some time.”
He said: “For methanol producing companies, a minimum production of 94% or more is profitable. When gas prices increase and the global price of methanol decreases, operating below capacity creates additional costs that lead to losses for the company.”