Iran sells $8.2bn petroleum products

News ID: 3929070 -
TEHRAN, Mar. 11 (MNA) – With replacement of petroleum products with natural gas in the country’s energy basket, Iran managed to export 165 million barrels of liquid oil worth 8.2 billion dollars.

Given the rise in natural gas production capacity following operation of new South Pars phases, the share of petroleum products in Iran’s fuel basket is gradually inclining to zero.

Volueme of natural gas output at South Pars joint field has reached over 500 million cubic meters though the figure is expected to hit the unprecedented level of 550-570 cubic meters per day once the five remaining phases come on stream.

On the other hand, in time with the rise in gas output, a decline is being felt in consumption of petroleum products in the country’s energy basket as their share has dropped to less than 10 per cent as regards supply of liquid fuel to power plants and major industries.

Moreover, consumption of four major types of oil and heating fuel, comprising diesel fuel, heating oil, kerosene and liquid gas, will come to an end in the year to come.

On the basis of official statistics, a total of 93 billion cubic meters of natural gas have been used in Iranian power plants and major industries in so far in the current Iranian calendar year (began March 20, 2016).

Despite the halt in gas imports from Turkmenistan and two fire incidents in South Pars, approximately 33 billion cubic meters of natural gas have been consumed in the meantime which marks a new record over the past 100 years.

Overall since the beginning of the present Iranian year, natural gas consumption in power plants and major industries has been 7.5 million cubic meters more than the corresponding period last year.

An aggregate total of 100 billion cubic meters of natural gas are expected to be used inside the country by the end of the current Iranian calendar year (to end March 21).

In time with the new record in gas supply to industries in the ongoing year, Iran was faced with a surplus in production of petroleum products which were naturally deployed to regional and global markets.

Deputy Oil Minister and Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi said Iran was capable of exporting about 500 million barrels of petroleum products per day though the average export figure has stood at 450 thousand litters.

The official estimated that Iran’s export capacity for liquid fuel will climb to nearly 600 thousand barrels per day thanks to the rise in gas output and replacement of petroleum products.

Considering 50 dollars per barrel as the average price for Iranian petroleum products, the daily revenue in the current year hit 22.5 million dollars.

On the other hand, a totoal of about 165 million barrels of Iranian petroleum products have been shipped to regional and global markets, the pacific region in particular, bringing about a total of around 8.2 billion dollars. The figure will climb to 20 billion dollars if gas condensate revenues are included in calculations.

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