GlobalData: the Middle East to lead global methanol capacity additions by 2030

Published by Ellie Brosnan, Editorial Assistant
Hydrocarbon Engineering, Friday, 24 July 2026 10:00

The Middle East is poised to dominate global methanol capacity additions by 2030, driven primarily by its access to abundant and cheap natural gas, which is a primary feedstock for methanol production, GlobalData has reported. The capacity additions are further fuelled by growing regional investments in methanol-to-olefins (MTO) complexes and rising adoption of methanol as a clean-burning marine fuel and chemical substitute.

The region’s dominance in methanol industry is supported by 13 upcoming projects, 11 of which are being proposed in Iran. The vast and cost-effective natural gas reserves provide the country with a massive competitive advantage and low production costs.

The highest capacity addition in Iran is likely to be added from two projects, namely the Mahtab Parsian Petrochemical Bandar Abbas and the Mahan Chemical Zagros Petrochemical Eslamabad-e-Gharb methanol plants. Both of them are expected to come onstream in 2028 and are currently under construction in Hormozgan and Kermanshah provinces, respectively.

Meanwhile, there are also two more projects in Kermanshah, both of which are expected to commence operations this year. In addition, the Bushehr province is also emerging as a pivot province in Iran, where four significant projects are being planned during the outlook period.

The remaining minor capacity additions in the region is expected from two projects in Saudi Arabia and the UAE. The capacity addition in UAE is likely to be added from the project in Abu Dhabi- the TAZIZ Ruwais Methanol Plant 1. It is likely to start operations in 2028. On the other hand, the capacity addition in Saudi Arabia is anticipated from a project in its Eastern Province, which is slated to start productions in 2027. Methanol Chemicals Co is the designated operator of this project and also holds its entire equity stake.

Further details of global methanol capacity and CapEx analysis can be found in GlobalData’s new report, ‘Global Methanol Industry: Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants, 2026-2030'. Access the original release here.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/24072026/globaldata-the-middle-east-to-lead-global-methanol-capacity-additions-by-2030/

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