Director General for export development department of Trade Promotion Organization Masoud Kamali Ardakani said on Saturday that petrochemicals and minerals export in year 1396 (2017-2018) increased 6.5 percent with amount of around 47 billion dollars.

According to the Customs statistics, petrochemicals export with exclusion of gas condensates had 8 percent decrease with amount of around 15 billion dollars, Kamali Ardakani said.

Volume of minerals and mining industry products export reached 7.5 billion dollars, showing 14 percent growth, he added.

Deputy Minister of Industry, Mine and Trade for export affairs Mojtaba Khosrotaj said in the meeting that given to created capacities, it is predictable that this year Iran has around 1.5 billion dollars increase in mine sector and 6.5 billion dollars increase in petrochemicals export.

Jump in Petchem Output, Exports

The removal of international sanctions on Iran in the aftermath of the implementation of Iran’s 2015 nuclear deal with six world powers, dubbed the Joint Comprehensive Plan of Action (JCPOA), once more tempted international companies and foreign investors to step into Iran which sits atop huge oil, gas and petrochemical deposits.

The JCPOA allows Iran to forge a new alliance with the West, which would benefit both sides. Such alliance would further interact through trade, investment and negotiations for the development of oil, gas and petrochemical projects. Now that the way has been cleared for investors and proprietors of technology to step into Iran, everybody is preoccupied with development in the shadow of the existing calm atmosphere.

Iran’s National Petrochemical Company (NPC), a subsidiary of Iran’s Ministry of Petroleum, has already embarked on activities to that end. Iran is currently producing at least 60 million tons a day of petrochemicals. In the meantime, more than 60 petrochemical projects left from the third, fourth and fifth national development plans are under operation.

Once the foregoing projects come online, Iran will see its petrochemical output double. A review of petrochemical production in Iran over past two decades indicates two periods of hike in production in 2006 and 2010.

According to the official data, Iran’s petrochemical production stood at around 10.8 million tons in 1997, which jumped to 18.3 million tons in 2006 and 42.6 million tons in 2010. According to projections, the output is expected to reach 53.4 million tons in the coming years.

The NPC data shows that petrochemical production in Mahshahr, Assaluyeh and other areas of Iran stood at 19.5 and 22.9, respectively and 11 million tons during the calendar year 1396 which ended on March 20.

A total of 53.4 million tons of petrochemicals were supplied by 51 petrochemical plants operating in Iran. That represents only 84% of Iran’s rated petrochemical production capacity.

Acting manager of production control at NPC Qodratollah Farajpour said feedstock shortages, technical and processing malfunction were to blame for the non-supply of 13 million tons of additional petrochemicals. He said that feedstock shortages were responsible for 6 million tons and technical malfunctions for 7.4 million tons. Farajpour said such restrictions needed to be minimized so that existing production capacities would be used. Furthermore, Iran’s petrochemical storage capacity currently stands at three million tons.

The value of products depends on a variety of factors including supply, demand, oil price and mix of products. If the average price for each tone of petrochemicals is assumed at $543, Iran’s petrochemical exports were on the decline from 2011 to 2017 due to oil price crash. In 2011, Iran exported 17 million tons of petrochemicals for $14 million, while in 2017, Iran’s petrochemical exports reached 21 million tons for only $11 million.

In terms of weight, the products included mainly methanol, liquefied petroleum gas (LPG) and urea fertilizer, which were priced respectively at $370, $380 and $210 per ton. Nonetheless, manufacturing more valuable products including polymers (polyethylene at $1,400 per ton) and Karoun Petrochemical Plant’s products (MDI at $2,800 per ton) could boost the value of petrochemical sales.

The 2011- 2017 period experienced a sharp decline in petrochemical exports in 2013 due to tough international sanctions imposed on Iran. The country saw its petrochemical exports sharply fall from 17.8 million tons in 2011 to 12.8 million tons in 2013. Thanks to the , Iran’s annual petrochemical exports have reached 21.5 million tons.

In Farajpour’s view, the growth perspective and the improvement in the rated production capacity of existing units indicate that due to the increased ethane production in the South Pars phases in coming years, the olefin units of Assaluyeh would move to enhance their ethylene production capacity through filling up their vacant capacities.

Fanavaran Petrochemical Plant hopes to reach its rated methanol production capacity by improving its installations, while Amir Kabir Petrochemical Plant plans to boost its rated olefin production capacity. Takht-e Jamshid Petrochemical Plant eyes building its second PBR production unit while Bandar Imam Petrochemical Plant is investing in a new olefin unit. The methanol unit of Kaveh Petrochemical Plant, with a rated capacity of 2.3 million tons a year, is close to becoming operational. It will start production this year or next year.

Furthermore, the methanol unit of Marjan Petrochemical Plant, with a rated production capacity of 1.65 million tons a year, is to come on-stream in coming months.

Share your view!

Farhad Daneshvar: President Hassan Rouhani in an addressing to the parliament on August 20, said that drawing $100 billion in foreign investment to develop Iran’s oil industry is among the oil minister’s main tasks in his second term.

“There is bad news and good news,” believes Chris Cook, a strategic market consultant, who also formerly headed the International Petroleum Exchange.

“The bad news is that the Trump administration is intent on making Iranian access to dollars — whether dollar payments or dollar investment via equity funding or debt financing — to all intents and purposes impossible, notwithstanding anything in the JCPOA,” Cook said responding to Trend query regarding the Islamic Republic’s capability to draw foreign investment to renew the country’s oil and gas industry.

“The good news is that it is completely possible for trillions of dollars worth of investment to be made in Iran and in neighboring countries without using dollars at all. This is because accounting/pricing — or keeping score — of transactions in dollars is very different from using the dollar clearing system to repay dollar debts or repatriate dollar profits on investment,” he added.

Iran’s Oil Minister Bijan Namdar Zanganeh has in recent years been engaged in updating the long-standing ‘Energy Diplomacy’, developed during the former president Mohammad Khatami’s administration, Cook reminded, adding that this ‘smart energy policy’ instrument consisted of energy swaps, such as the Caspian oil swap (flows of Caspian crude oil into northern Iran, exchanged for flows of crude oil delivered out of the Persian Gulf).

“In addition to reactivation of these and similar swaps, perhaps the most remarkable — and most important — ‘Energy Diplomacy’ was the recently contracted South Pars 11 investment by Total, through which 20 years’ investment of technology, skills and experience will be swapped for a flow of condensate. The outcome is firstly a ‘smart swap’ of intellectual value for the value of carbon fuels, and secondly, through the participation of Chinese investors the deal provides 20 years’ security of condensate demand for Iran and 20 years’ security of condensate supply for China,” Cook suggested.

“The point is that such smart swaps will — within a suitable networked market platform or ‘energy clearing union’ — enable many hundred billion dollars worth of intellectual and other resources required by Iran to be swapped for many hundred billion dollars worth of carbon fuels supplied by Iran.

“Since such swaps do not take place on the oil market platform dominated by the US, they do not require settlement in dollars through the US dollar clearing system from which Iran is effectively excluded.”

Share your view!

By Karen Gilchrist: Iran signed a $5-billion deal with a consortium led by French oil company Total on Monday to develop the giant South Pars Gas Field — the world’s largest natural gas field.

The deal is the Islamic Republic’s first with a European oil company in more than a decade, marking a major milestone for a country whose standing as an international trade partner has hung in the balance ever since it was slapped with sanctions in 2006 amid concerns that it was developing nuclear weapons.

Total has taken a 50.1 percent interest in the South Pars project, and alongside state-owned China National Petroleum Corporation, which holds 30 percent, and Iran’s Petropars (19.9 percent), will begin producing gas for the Iranian market from 2021.

Though the deal has been a slow burn, coming some 18 months after EU sanctions against the Middle Eastern nation were lifted, Iran will be hoping that it marks a new era of investor confidence and a particular boon for its dwindling oil production.

“Total’s decision to sign the South Pars 11 contract is a cautiously positive sign for foreign investment in Iran’s upstream,” Richard Mallinson, geopolitical analyst at Energy Aspects, told CNBC via email on Monday.

Who else is ready to invest in Iran?

Already, India, one of Iran’s most steadfast trading partners, on Monday announced that a consortium of domestic businesses would offer up to $11 billion to develop another of Iran’s natural gas fields, Farzad-B field, and create the infrastructure to export the fuel, Bloomberg reported, quoting Narendra Kumar Verma, managing director of the overseas investment unit of India’s largest explorer, Oil and Natural Gas Corp. (ONGC). / Farzad B gas field, Persian Gulf

Iran is the second-largest supplier of crude oil to India, and, as a result, India is one of the largest foreign investors in Iran’s oil and gas industry. However, fraught diplomatic relations between Iran and other states have made it a difficult relationship to uphold.

Under US sanctions, which were reinforced last month, India has been unable to trade with Iran using the dollar — the world’s premier reserve currency — and had to defer payments or revert to payments in rupees and, more recently, euros.

Iran has the world’s largest natural gas reserves and the fourth-largest oil reserves, according to the US Energy Information Administration. This translates to 10 percent of the world’s crude oil reserves and 13 percent of OPEC’s.

Why is Total doing the deal now?

Total was previously one of the biggest investors in Iran before sanctions were imposed. Though the deal was laid out last year, the group has been awaiting clarity on the Trump administration’s stance on sanctions.

During campaigning, President Donald Trump pledged to ‘dismantle’ the 2015 nuclear agreement, which aimed to reduce sanctions, though has not yet followed up on it.

Total has so far only committed to an initial $1 billion investment, citing continued risks. The stock was up 1.78 percent when the deal was signed Monday.

Though the investment will help revive Iran’s antiquated energy sector, which has borne the brunt of years of under-investment into the country, it will be purely domestically focused.

It is likely to have less of an impact on the wider international markets, which have been struggling to balance output since a supply glut saw prices plummet in early 2015.

Brent prices were lower by 0.06 percent in Monday afternoon at $48.75 per barrel while US crude was up 0.09 percent at $46.08 per barrel.

Lack of new deals holding back growth

Indeed, while companies including Royal Dutch Shell and Italy’s Eni have signed provisional agreements with Iran, according to the FT, the path ahead to recovering Iran’s energy sector looks far from smooth.

“Other developments are not so positive,” said Mallinson, citing Azadegan, another Iranian oilfield project which has suffered continued delays amid uncertainties over Iran’s trading future.

“The tender for the Azadegan oilfield was supposed to be imminent but was then pushed back by three or four months to give foreign companies more time for analysis. This suggests that the major firms that Tehran really wants to attract are largely not ready to commit to Iran deals.

“Currently Iran’s oil production has flat-lined and each new delay to the return of foreign investors pushes back the timeline for further growth in output,” Mallinson added.

Share your view!

Iran signed a multibillion dollar deal on Monday with French oil giant Total and Chinese state oil company CNPC to further develop the country’s giant South Pars Gas Field in cooperation with Iran’s Petropars.

The first major Western energy investment since sanctions against Tehran were lifted will cost up to $5 billion, with production expected to start within 40 months, an Oil Ministry source said, Reuters reported.

The US and other world powers lifted sanctions after the country pledged to roll back its nuclear program.

With the 20-year deal, Total is now returning to Iran, where it first began operating in the 1990s. Total CEO Patrick Pouyanné said in a statement on Monday that the investment would be “in strict compliance with applicable national and international laws”.

The US still has restrictions in place that block most American companies from investing in Iran. And some Western companies have been reluctant to jump in since Iran still faces sanctions that prevent firms from transacting with Iran in US dollars.

Total estimates the first phase of the project will cost around $2 billion. It is taking a 50.1 percent stake in the South Pars project. CNPC will own 30 percent while the other 19.9 percent will go to Petropars.

The project will have a production capacity of two billion cubic feet per day, or 400,000 barrels of oil equivalent per day including condensate, according to Total.

Iran’s Oil Ministry predicts the project will eventually produce gas products worth $54 billion based on current prices. The gas will start flowing into the Iranian market in 2021.

Iran has significantly ramped up its energy production since the sanctions were relaxed.

Figures from OPEC show Iran has boosted its daily crude oil production by more than 33 percent since 2015.

Iran sits on nine percent of the world’s proven oil reserves and 18 percent of the planet’s natural gas, according to data from BP’s Statistical Review of World Energy.

Iran and Qatar share the South Pars field.

Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.

Iran needs foreign investment to repair and upgrade its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.

Iran has named 34 companies from over a dozen countries as being eligible to bid for oil and gas projects using the new, less restrictive contract model.

The firms include Shell, France’s Total, Italy’s Eni, Malaysia’s Petronas and Russia’s Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.

Russia’s Zarubezhneft signed an MoU to conduct feasibility studies on two joint fields in the west of the country.

Norway‘s International Aker Solutions Company signed an MoU to modernize Iran’s oil industry.

In May 2016, Austria’s OMV signed an MoU for projects in the Zagros area in western Iran and the Fars field in the south.

South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.

Italy’s Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.

Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.

Lukoil, Russia’s second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.

Germany’s Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran’s oil operations and refineries.

BASF’s Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.

President Rouhani:
Developing South Pars Phase 11 not only an economic contract, but also a scientific, technological, management cooperation

President Rouhani met with the Chairman and CEO of France’s Total company and described South Pars region as an important centre for developing international cooperation with Iran in the field of energy-technology.

In the meeting that was held on Monday in Tehran, Dr Rouhani told Total’s Patrick Pouyanné: “Due to the good potentials and hard-working young men in Iran, the contract of developing Phase 11 of South Pars is not only an economic one, but also a scientific, technological and management cooperation”.

Total CEO: We seek a long-term cooperation with Iran

“The Islamic Republic of Iran and France have always had good relations and cooperation with each other,” he continued saying.

Referring to France’s position in economy and energy technology, he added: “The signing and execution of this contract will be a significant step in development of economic and technological cooperation between the two countries”.

Stating that the 11th administration has attempted to finalise the Joint Comprehensive Plan of Action (JCPOA) to clear the path for economic cooperation between major companies and Iran, the President said: “Fortunately, this political will from the Iranian side and among P5+1 countries paved the way for this agreements with Total”.

President also referred to his Europe and France visit after the signing of JCPOA, adding: “In Paris, there was a good political will among the authorities of both countries to develop cooperation and important agreements were signed between the two countries to deepen ties and cooperation”.

“It is our policy to cooperate with major companies such as Total,” said Dr Rouhani, adding: “Currently, projects in gas and oil worth roughly $200bn are ready to be invested on and major foreign companies can cooperate in these projects”.

“We must work hard to achieve peace and stability in the region serving economic progress and development of the region, because scientific and developmental cooperation can help us combat ignorance and poverty as the bedrocks of terrorism expansion,” he continued.

The President also expressed hope that with the new agreements and cooperation in the field of gas, oil and petrochemicals, Iran and France take considerable steps in developing ties.

During the meeting, the Chairman and CEO of France’s Total company Patrick Pouyanné also expressed happiness over meeting the President of the Islamic Republic of Iran and described the contract as a very important one, saying: “Today, we are very happy that we could finalise and execute the contract with the help of the authorities of the two countries”.

Stating that the JCPOA agreement has paved the way for further development of relations between European countries and Iran, he said: “We are optimistic about our cooperation with Iranian companies”.

“We seek a long-term cooperation with Iran,” continued Pouyanné.

Share your view!

Oil Minister Zanganeh said negotiations with the Danish business conglomerate, Maersk Group, were being pursued over development of South Pars Oil Layer (SPOL).

Bijan Zangaeh, while pointing to continuation of talks with Maersk Group, voiced optimism that final agreements will be reached in near future.

“What’s more, Pars Oil and Gas Company Ltd. has been chosen as the contractor of the project,” he continued.

In the same line, Deputy Head of NIOC for Development and Engineering Affairs Gholamreza Manouchehri recounted on results of negotiations asserting “for the moment, talks will continue with Denmark’s Maersk until a contract is signed in near future.”

Manouchehri’s remarks come at a time when he has asked Petroiran Development Company to seek consultations from Maersk Group. Such an emphasis seems to be rooted in the fact that the Danish firm is in charge of developing South Pars Oil Layer project.

Complementing oil minister’s statements on the change in the project’s contractor, the NIOC official said “the primary contractor of the project was Pars Oil and Gas Company though the responsibility was later shifted to the Iranian Offshore Oil Company (IOOC) before returning to the former again based on recent decisions.”

“SPOL was supposed to yield 35,000 oil barrels per day on a regular basis though the output figure currently stands at 25 thousand barrels and will hopefully reach the envisaged level by the end of current year,” stressed the official.

Until a year ago, Maersk Group was in charge of development and production in the Qatari side of South Pars Oil Layer and it had managed to recover one billion barrels. Nevertheless, Total’s proposal to Qatar over the layer led the Danish firm out of the oil-rich region and marked an end to its partnership with Qataris.

Afterwards, Maersk launched more serious talks with National Iranian Oil Company (NIOC) though no final deal has been sealed yet. Several decades ago, the Danish business conglomerate held sessions with the Iranian Ministry of Petroleum though its proposals were rejected and Petroiran Development Company was put in charge of the developmental project.

Several marginal issues in the drilling project and failure of Schlumberger drilling program brought about a series of unwanted events until the first Floating Production, Storage and Offloading (FPSO) unit was purchased.

Return of Maersk Group to Iran is reminiscent of the remarks made by International Petroleum Consultant and the then Director of Maersk for legal affairs and contract Pasha Ramazanpour who said “despite willingness of the Danish firm to develop the oil layer, the project has been assigned to a newly-formed Iranian company.”

A.P. Moller–Maersk Group, also known as Maersk, is a Danish business conglomerate. A.P. Møller – Maersk Group has activities in a variety of business sectors, primarily within the transport and energy sectors.

Share your view!

Iran’s President Hassan Rouhani inaugurated five new phases of the South Pars Gas Field on Sunday which were completed at a cost of $20 billion, local media reported.

The inauguration of phases 17-21 paves the way for Iran to overtake neighboring Qatar in production from the offshore gas field which it shares with Iran, Iranian officials said, reported AFP.

Iran has so far developed 12 phases in the field – phases 1, 2&3, 4&5, 6-8, 9&10, 15&16.  The remaining phases are 11, 12, 13, 14 and 22-24.

“Our production has reached 575 million cubic meters per day,” said Rouhani at the ceremony.

Iran’s total gas production is 885 million cubic meters per day.

It is estimated that production from every two phases of South Pars would generate $3.5-$4 billion for Iran. Reports further said that the total investments in phases that were inaugurated today would be reimbursed within less than two years.

“At the height of sanctions, with the help of Iranian engineers and workers, we succeeded in developing 11 phases of South Pars,” noted Oil Minister Bijan Namadar Zanganeh.

South Pars is the largest known gas reserves in the world. Iran has the largest gas reserves in the world, and the fourth-largest oil reserves.

Each of the new projects produces 28 million cubic meters per day, Zanganeh told reporters late Saturday.

Qatar announced earlier this month that it was ending a 12-year ban on new projects at its section of the shared field. Qataris call their part of the deposit the North Field, which together with South Pars forms the world’s largest reserves of non-associated gas. Iran has no plans to impede Qatar over its activities at North Field, Zanganeh said. “They can carry out their development projects as we do ours,” he said.

 Iranian President Hassan Rouhani inaugurated Phase 19 development project of the South Pars gas field (SP. 19).

Iran is targeting the export of 50 million cubic meters of gas per day to neighboring Iraq once that country can arrange for a letter of credit to finance the purchase, Zanganeh said.

Since the nuclear deal went into effect in January 2016, Iran has increased oil production from 2.6 million barrels per day (mbd) to 3.9 mbd, while more than doubling its oil exports.

Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.

Iran needs foreign investment for repairs and upgrading of its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.

In November 2016, France’s Total became the first oil major to sign a big deal with Tehran since the lifting of sanctions and agreed to help it develop the world’s largest gas field, South Pars.

Shell signed a provisional deal in December to develop Iranian oil and gas fields of South Azadegan, Yadavaran and Kish.

Iran has named 29 companies from more than a dozen countries as being eligible to bid for oil and gas projects using the new, less restrictive contract model.

The firms include Shell, France’s Total, Italy’s Eni, Malaysia’s Petronas and Russia’s Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.

Russia’s Zarubezhneft signed an MoU for a feasibility study on two joint fields in the west of the country.

Norway’s International Aker Solutions Company signed an MoU to modernize Iran’s oil industry.

Last May, Austria’s OMV signed an MoU for projects in the Zagros area in western Iran and the Fars field in the south.

South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.

Italy’s Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.

Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.

Lukoil, Russia’s second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.

Germany’s Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran’s oil operations and refineries.

BASF’s Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.

Share your view!

With implementation of new South Pars phases, Iran’s ethane output will double as the country will be able to rival US in producing the main feedstock for petrochemical industry.

Ethane remains as one of the world’s most strategic gas products which marks the main feedstock for petrochemical industries in various countries. A boost in ethane production and its conversion into various polymer and petrochemical products not only will lower raw sales but also will yield high value-added products usable in various industries.

Over the past two decades of development in South Pars joint field, he main focus has been always placed on recovering more natural gas and gas condensate as two main products to the extent that no ethane output has been envisaged for Phases 1, 2, 3, 6, 7 or 8.

Low ethane production figures in South Pars led to several difficulties in supplying feedstock to the country’s petchem industries as the rise in ethane-based units in Assalouyeh, an unofficial quota has been defined for balanced supply of feedstock to the petrochemical industry.

Presently, Iran’s ethane consumption capacity has mounted to about 5.250 million tons per year while the production figure for the strategic gas feedstock stood at only about three million tons.

On the other hand, the consumption figure for ethane is expected to experience a 4-4.1-million-ton rise and reach a total of nine million tons per year once ongoing petrochemical projects come on stream.

Nevertheless, implementation of South Pars Phases 17, 18, 19, 20 and 21 by early April will add three million tons to Iran’s ethane output capacity. In simple terms, full operation of the five new phases will double the country’s ethane production giving a total of six million tons per year.

With the upsurge in ethane output, the quote system will be canceled in the petrochemical industry as demands of domestic manufacturers will be fully supplied, a measure which will in turn lead to increased output of downstream products like a variety of light and heavy linear polyethylene, propylene and polypropylene among the others.

Moreover, in time with the countdown for operation of five new South Pars phases and, Iran will also outshine Qatar and Saudi Arabia, as two traditional rivals, in production of ethane.

Meanwhile, it has been anticipated that full implementation of the remaining phases in the joint field, including Phases 13, 14, 22, 23 and 24, will add another three million tons to the country’s ethane production capacity in which case Iran will turn into one of the largest ethane producers both in the Middle East and even in the world.

The rise in ethane production from South Pars field is expected to increase the country’s petrochemical and polymer production by 10 to 20 per cent.

Over the past four years, the US has turned into one of the largest producers of ethane by relying on unconventional resources called shale gas. Development of Panama Canal has also turned America into the top exporter of ethane in the world.

Some market analysts belive that the rise in America’s ethane output remains as a threat to major manufacturers of petrochemical products in the Middle East like Iran, Saudi Arabi and Qatar.

Yet, it seems that the rise in exports of American ethane will exert no effect on development of the Iranian petrochemical industry as Iran can outweigh the North American rival for at least a 10-year period given the uplift in production of the strategic gas product.

Share your view!

The second naphtha cargo produced at Setareh Khalij Fars Refinery has been shipped to Japan.

Following exports of the first naphtha cargo to the United Arab Emirates by OPEC Affairs Department of the Ministry of Petroleum, a second package, with a volume of 280 thousand barrels, has been deployed to Japan.

The second shipped cargo is expected to reach destination in coming days.

Setareh Khalij Fars Refinery, as the first condensate-based refinery, enjoys a capacity of 360 thousand barrels per day and comprises distillation units, liquefied gas refining, catalytic converter, naphtha refining, isomerization, refined kerosene and gas oil.

Situated in vicinity of Bandar Abbas refinery, the complex is in final stages of construction and aims to produce gasoline, diesel, LPG and jet fuel.

The required feed for Setareh Khalij Fars Refinery will be supplied through a 485-km pipeline derived refineries of South Pars gas field.

Upon completion, the project will increase the country’s gasoline and gas oil output capacity by 36 and 14 million liters respectively.

Also, Setareh Khalij project is expected to yield four million liters of LPG, three million liters of jet fuel as well as 130 tons of sulfur per day. The refinery enjoys about 11 million barrels of capacity for storing petroleum products.

Share your view!

Iran started exporting condensate — a form of ultra light oil — from two newly launched phases of its giant South Pars Gas Field to Japan.

Managing Director of National Iranian Oil Terminals Company (NIOTC) Pirouz Mousavi was quoted by Press TV as saying that the Japan-bound consignment contained 160,000 barrels of condensate from South Pars phases 20 and 21.

He added that a 300-ton Japanese vessel had lifted the consignment from phases 20 and 21 as well as another from phases 2, 3, 4 and 5.

He did not specify how much had been loaded from other phases but it could stand at several hundred of thousands of barrels.

Mousavi added that the vessel — named ‘Fujikawa’ — was also to load 650,000 barrels of crude oil from Iran’s Forouzan oilfield before leaving for Japan.

Iran announced in December that it was already expanding the market for its condensate, which can be used to make both fuel and plastic.

Masoud Hassani, the managing director of South Pars Gas Complex, told the domestic media at the time that the country had sent its first cargo of one million barrels of condensate to Europe.

In September, indications grew that condensate had already found a special position in Iran’s exports.

The media quoted officials as saying at the time that exports of the ultra-light oil over a period of five months from March 21, 2016 stood at above seven million tons, showing an increase of 76 percent compared to the figure for the same period last year.

South Korea is a key importer of Iran’s condensate. In June, Reuters reported that the country’s imports of condensate from Iran could reach a record level of six million barrels — or 200,000 barrels a day – over the month.

Reuters said it had used figures provided by traders to make the estimate given that South Korea does not provide separate data on imports of condensate.

Share your view!

Iranian petroleum Minister Zanganeh, while evaluating current oil market conditions as satisfactory, said the country’s oil revenues will mount to 41 billion dollars in the present Iranian year.

Speaking to an IRIB TV, Bijan Zanganeh touched upon roots of the halt in gas imports from Turkmenistan while highlighting that the volume of gas purchase from the neighboring country had been negligible.

The official said National Iranian Gas Company had been put in charge of pursuing the issue of termination in gas imports from Turkmenistan asserting that Oil Ministry or the Government would not follow up the issue.

He stressed that Islamic Republic of Iran pursued the policy of holding friendly relations with all neighboring states; “existing dispute between NIGC and Türkmengaz need to be resolved.”

Later into his remarks, Zanganeh recalled that 11 new South Pars phases had come on stream over the past three years or will become operational in the present year; “phases 17, 18, 19, 20 and 21 will be inaugurated by the end of the current Iranian calendar year (to end March 20).”

The senior oil official further referred to the boost in production at West Karun joint oilfields saying “parallel with the rise in oil and gas production, implementation of Resistance Economy policies has been also put on the agenda of Oil Ministry.”

“Accordingly, gas transmission to villages is being undertaken,” highlighted Bijan Zanganeh adding that the gas transfer pipeline to Zahedan will be completed within months as promised earlier by the President.

He estimated that revenues from sales of crude oil and gas condensate will climb to about 41 billion dollars by the end of the ongoing Iranian year; “about 24.7 billion dollars of oil revenues were received in the first nine months of the present year.”

Oil Minister of Iran predicted that each baller of oil will be sold at 55 dollars adding “commitments of OPEC members to cap output became operational as of January 01.”

Zanganeh reassured that OPEC and non-OPEC members would meet their obligations as a result of which surplus of oil will be removed from the market giving way to a balance between supply and demand as well as to higher crude prices.

He recalled that oil prices were already enjoying an upward trend; “the present uplift in prices is rooted in effects exerted on market psychology by the freeze deal though more tangible outcomes are yet to be revealed once all partied curtail production.”

Oil minister deemed current market conditions as satisfactory and one the right path reiterating that “prices are not falling as even consumers would not favor very low figures.”

“Ultimately, producers and consumers have reached the consensus that low crude prices are contrary to interests of global economy, sustainable supply of energy and even production of new energies.”

At the end of his remarks, the official disavowed the claims that Iran’s oil revenues were blocked by certain countries concluding that “all profits from the sale of oil are being received smoothly.”

Share your view!