Iran Sees Steady Growth in Export of Oil, Gas, By-Products

Iran Sees Steady Growth in Export of Oil, Gas, By-Products

The nuke deal reached in 2015 with the world powers has reshaped the Iranian economy in general, and particularly energy sector. In the short term Iran was able to revive its auto, air and energy sectors, while increasing the output and export of oil, gas and by-products.

The Islamic Republic exported $55.752 billion worth of oil and oil products (including crude oil, condensates and natural gas plant liquids-NGPL, petroleum products) as well as natural gas during the last Iranian fiscal year (ended on March 20, 2017), according to the latest report of the Central Bank of Iran released on July 10.

The report indicates that Iran’s total oil, gas and oil product exports increased by 66.1 percent compared to $33.57 billion worth of exports in preceding year.

Iran’s average oil and oil product exports stood at 2.224 million barrels per day in last fiscal year, 41.3 percent more year-on-year.

The country’s oil output stood at 3.761 million barrels per day during the 12-month period, registering a rise by 16.4 percent compared to the preceding year.

With its enormous natural gas reserves, Iran is committed to increase gas export and the country has not yet translated its potential into reality.

The National Iranian Gas Export Company reports that today natural gas is in more demand at market than other forms of energy.

Currently, Iran has agreements with Turkey, Pakistan, Iraq and Oman to supply 46 bcm/yr of gas to these countries. Islamic Republic has also started exporting gas to Iraq in restricted volumes which is envisaged in agreement signed in 2013.

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For years, Iran has been striving to launch exports of natural gas to Europe. Unfortunately, these plans were destroyed due to complications that arose from the Western sanctions.

However, Deputy Oil and Gas Minister for International and Commercial affairs Amir Hossein Zamani-Nia in a recent interview said that gas exports to Europe are not among Iran’s top priorities and that the country gave preference on this issue to neighboring countries and India.

“The European gas market is overloaded,” he said, “while the implementation of the Joint Comprehensive Plan of Action and the lifting of sanctions from Iran provided a good opportunity for gas exports to neighboring states.”

Iran, Pakistan, and India have been negotiating for more than a decade to build a 2,775-kilometer gas pipeline from Iran’s South Pars gas field in the Persian Gulf through Pakistan to India.

However, Zamani-Nia mentioned that Iran as a country with large gas reserves should have a program for exporting gas to Europe in the long term perspective.

Iran’s proven gas reserves amount to 33.5 trillion cubic meters of gas. However, the country lacks necessary export infrastructure to realize gas sales. Under sanctions, Iran was banned from the global financial system, preventing the development of its oil and gas fields and necessary infrastructure.

Iran’s gross gas output stands at 285bn m3/yr. The country plans to increase this volume to about 440 bcm/y by 2021 after full operational of South Pars and starting gas production from other projects like Kish gas field.

The country recently signed a multibillion-dollar gas deal with France’s Total for investment in Phase 11 of South Pars. This deal is the Islamic republic’s first one with a European oil company in more than a decade.

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Within a 20-year period, 335 billion cubic meters of soar gas will be extracted from the phase. Once processed, 315 billion cubic meters of sweet gas, 290 million cubic meters of gas condensate, 2 million tons of sulfur, 14 million tons of liquefied petroleum gas and 12 million tons of ethane will be produced.

The Phase 11 is expected to bring $84 billion worth of revenues for Iran, based on the current price of crude oil.

Source Link – Azer News

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