Feasibility Study of Methanol-to-Gasoline (MTG) Project in Iran

Researcher: Ebrahim Golmah

October 14, 2025

The Methanol-to-Gasoline (MTG) technology represents one of the most promising pathways for converting methanol into high-quality, environmentally friendly gasoline. The process, which has been successfully commercialized in several countries, enables the production of gasoline that is free of sulfur and nitrogen compounds and meets Euro-V quality standards.

In this study, a comprehensive technical and economic feasibility analysis was conducted for the establishment of an MTG production unit in Iran. The process utilizes methanol as the main feedstock, while the final products include gasoline, LPG, and heavy aromatics.

From a market perspective, Iran currently enjoys a surplus methanol production capacity, with total output significantly exceeding domestic consumption. At the same time, the growth rate of gasoline demand has outpaced domestic production, resulting in a widening gap that is increasingly being met through imports. This dual dynamic — methanol oversupply and rising gasoline demand — creates a strong economic rationale for the development of MTG projects in the country.

_{Figure 1-Gasoline Production and Consumption Trends in Iran (million liters per day)}

_{Figure 2-Gasoline Production and Consumption Trends in Iran (million liters per day)}

The project’s technical configuration was designed based on proven industrial technologies with adaptations suitable for local conditions. Economic evaluations indicate that the project is financially feasible and attractive for investment, particularly under current methanol and gasoline pricing structures.

Beyond its economic value, the MTG project offers strategic benefits for Iran’s energy sector, including:

Enhancing the value chain of domestic methanol production,

Reducing reliance on gasoline imports,

Promoting cleaner fuel production in line with environmental standards.

Overall, the results demonstrate that the MTG process can play a pivotal role in Iran’s downstream energy development, combining economic efficiency, technological feasibility, and energy security objectives.

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