TEHRAN - Japan's Sojitz co-signed a memorandum of understanding (MOU) with Iran’s National Petrochemical Company (NPC) for initial studies on methanol to propylene plants (MTPs) in Iran, Shana reported.

According to the report, the MOU was signed by Investment Director of NPC Hossein Alimorad and Masaru Sato, Sojitz's regional director, on Saturday.

The signing ceremony was also attended by Managing Director of the NPC and Deputy Oil Minister in Petrochemical Affairs Marziyeh Shahdaei.

In the event Shahdaei said since Iran has abundant gas resources, converting methanol to propylene has always been on the agenda for the country’s oil ministry.

For his part, Masaru Sato mentioned his company’s long history in Iran and said, “Sojitz is the first foreign company active in Iran's petrochemical sector.”

Propylene is used in various spheres including automotive, textile, packing, carpets and etc. The most common usage of polypropylene is in the automobile industry.

Global demand for propylene in 2020 is estimated to reach 110 million tons.

Sojitz Corporation is a general trading company based in Tokyo, Japan. It is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects, in Japan and overseas.

EF/MA