Iran's energy sector review

Despite Iran’s growing petrochemical production level, the idle capacity of plants increased significantly. According to an official report prepared by National Petrochemical Company and seen by Trend, about 25 percent of Iran’s nominal petrochemical production capacity was idle during 11 months of last fiscal year (ended March 20). During the previous fiscal year (2015/2016), the figure was 20 percent. The country added about 4.3 million tons per year (mn t/y) to its nominal petrochemical production capacity during 11 months of last fiscal year. Iran’s petrochemicals output 11 months of last fiscal year (2016/2017) 12 months of the previous fiscal year (2015/2016) Nominal capacity (mn t) 62.2 57.9 Projected production (mn t) 52.945 49.365 Actual production (mn t) 46.17 46.41 Idle capacity 25% 20% Share of feedstock shortage in idle capacity 47.9% 44.8% Source: National Petrochemical Company The statistics indicate that the share...

Iran’s fiscal year would end on March 20, and the latest statistics indicate that the country has increased its gas output capacity by about 70 mcm/d during the current fiscal year. The country’s gas output growth came from the South Pars gas field, joint with Qatar. Iran’s side contains about 14 trillion cubic meters of gas and 18 billion barrels of gas condensate. Before Hassan Rouhani’s administration (mid-2013), Iran’s total gross gas output (including re-injection and flaring) was about 600 mcm/d, of which South Pars’ share was 40 percent. Before mid-2013, only ten phases of the field had been commenced with 240 mcm/d of gross gas output. Currently, the volume stands at about 469 mcm/d. During Rouhani’s administration about 8 new phases of South Pars became full of half operational and the output of phases 1-10 increased. South Pars Current output (mcm/d) Final capacity (mcm/d) Phases 1-10 270 270 ...

With the current pace of Iran’s energy consumption growth, the country may become a net energy importer by 2025, Farzad Kiyasat, a member of Iran’s Energy Conservation Society, said Mar. 13. He added that Iran, with a population of 80 million, consumes energy like a country with an 800-million population, and each 4 years Iran’s energy usage doubles, Fars reported. According to him, the energy intensity index of Iran is very high. Currently, Iran daily produces 4.2 million barrels (mb/d) of oil and gas condensate, while the figure is expected to reach 5.4 mb/d by 2020. Iran’s gross gas production stands at about 280 billion cubic meters per year (bcm/y), which is expected to be around 450 bcm/y in five years. However, the official statistics of last decades indicate that the country’s energy consumption increased significantly, very faster than population and GDP growth. Iran’s primary energy consumption. Source: Oil Ministry’s statistics The statistics indicate that the...

Pakistan should have imported 22 million cubic meters per day (mcm/d) of Iranian gas since January 2015 based on an agreement, but it hasn’t even decided to build a pipeline. Iran has stretched 907 km pipeline (IGAT-7) from South Pars gas field to Iranshar in Sistan and Baluchestan Province, but 200 km of is needed to reach the Pakistani border. 56-inch IGAT-7 pipeline is aimed to transit 110 mcm/d, but it is active with only one compressor, several times less than the other cross-country pipelines with the same capacity and length, which uses 8-17 compressors each. IGAT-7 would use 2 compressors in coming years. Iran started the construction of a 36-inch branch from Iranshahr to Zahedan city in 2013. It aims to supply gas to 105,000 households in Zahedan city. According to the latest statistics about the country’s energy balance, published in 2015, some 6,500 households in the all of province were using only 6 mcm/y of gas, while the country’s total gas usage in households in I...

Indonesian State-owned Energy Company Pertamina and Russian Lukoil are negotiating with Iran to develop the same oil projects. The Office of the Coordinating Economic Minister of Indonesia issued a statement Feb.27, saying that Pertamina will submit proposals to the Iranian government for the exploration of Ab Teymour and Mansouri oil fields. Based on a study conducted by Pertamina, the oil reserves in the two fields amount to 1.5 billion barrels (recoverable oil). “The production potential reaches 200,000 barrel per day at each field,” the statement said, the Jakarta Post reported. On the other hand, the Middle East head of Lukoil Gati Al-Jebouri told Bloomberg Feb.27 that the company is is in talks with National Iranian Oil Company (NIOC) about the Ab Teymour and Mansouri oil fields in western Iran. Both Pertamina and Lukoil are among 29 foreign companies that have been qualified by NIOC to take part in Iran’s upstream oil and gas projects. Despite Pertamina’s study, N...

The share of petrochemical products in Iran’s industrial exports has increased despite low oil price. According to an official document, prepared by Iran’s Oil Ministry and seen by Trend, Iran exported 16.961 million metric tons (mn mt) of petrochemicals worth $7.387 billion during 10 months of the current fiscal year. The country’s total industrial exports also stood at $19.161 billion, while the total non-oil exports (excluding gas condensate) stood at $29.244 billion. Therefore, the share of petrochemical products in industrial exports and total non-oil exports stood at 38.5 percent and 22.25 percent respectively. The statistics of Iran’s petrochemicals export share in industrial and total non-oil exports(%): The official statistics indicate that the volume of petrochemical exports increased after 2014, when the western sanctions on Iran’s petrochemical sector were eliminated, but the value has remained almost the same, due to low oil price. During 10 months of the ...

Iran has doubled gas output capacity since 2005 to about 284 billion cubic meters in 2016, of which 97 percent is methane and the remainder is ethane, propane, butane, etc. Gas condensate output also increased at the same pace to above 560,000 barrels per day in 2016. All of the mentioned raw materials are feedstock for petrochemical plants, but according to an official statistics prepared by Oil Ministry and seen by Trend, there has been a significant amount of idle capacity since 2005 and feedstock shortage shares 44 percent of the total idle capacity. During last years, Iran increased feedstock supply to petrochemical plants, but the rapid growth of nominal production capacity as well as export decline due to sanctions led to continuance of idle capacity. There was a slight growth in feedstock supply, while the nominal capacity of petrochemical plants increased by 20 percent during the mentioned period. Iran’s feedstock supply to petrochemical plants: Feedstock 201...