Methanol is the simplest type of alcohol, also known as methyl alcohol. It is relatively volatile and colorless, with the chemical formula CH₃OH. This substance is classified as one of the basic materials in the petrochemical industry. Methanol is produced from synthesis gas, which in turn is derived from various sources, including natural gas (methane), coal, and liquid fuels. An important point in methanol production across different regions of the world is the feedstock used. The Middle East produces 100% of its methanol from natural gas, while Northeast Asia (China, Japan, South Korea, and Taiwan) produces 67% of its methanol from coal and only 17% from natural gas. The European Union produces 46% of its methanol from heavy liquids and 47% from natural gas. North America, similar to the Middle East, produces 96% of its methanol from natural gas. The difference in the type of feedstock used for methanol production in various regions has created a competitive advantage for regions with abundant natural gas. This has led to a significant gap between the global methanol production capacity and actual production. In 2014, the global methanol production capacity was around 106 million tons, while the actual production volume was only 64 million tons. This comparison indicates that there is a 40% unused capacity in global methanol production and supply, largely due to the reliance on cheap resources in regions like the Middle East.
Methanol is considered a strategic product in the production of many final products such as solvents, paints, plastics, and antifreeze. The diversity of methanol derivatives and their use in various industries have made this product a strategic commodity. The majority of the methanol produced worldwide is used in the production of formaldehyde, acetic acid, and MTBE (methyl tert-butyl ether). Additionally, methanol is used to a limited extent as a fuel in internal combustion engines.
