Iran's energy sector review

While Iran’s energy minister says the drop in gas export price is 1.5 times more than the decline in power export price, Oil Ministry claims that electricity exports for Iran are totally unprofitable. Energy Minister Hamid Chitchian said Jan. 28 that Iran’s gas export price plunged from $450 per thousand cubic meters in 1H14 to about $250 currently (a 44 percent decrease), but the power export price experienced only a 20 percent decline to $100 per thousand kilowatts hour (kWh). In 2016, Oil Minister Bijan Namdar Zanganeh said, regarding low efficiency of power plants, that exporting electricity is not only unprofitable, but also damages Iran’s gas export policy. Deputy Oil Minister Amir Hossein Zamaninia also told Trend in August 2016 that Energy Ministry has a huge amount of delayed debts for taking fuel from Iran’s national oil and gas companies. Now, SHANA news agency, which belongs to Oil Ministry, has reported regarding the 37 percent efficiency of power plants that for ...

Iran signed an agreement on replacing its old taxis with new 10,000 gas-fired hybrid taxis. The agreement was signed between Iran’s Taxi Company and Iran Fuel Conservation Company. According to Iran’s 5-year development Iran, it should import 17,000 buses and 140,000 taxis that use gas (CNG) as fuel. Iran also plans to improve its rail transport system to save some 13 billion liters of gas oil demand per year. Iran’s transport sector consumes about 74.9 million liters per day of gasoline as well as about 60 million liters per day of gas oil, which shares 25 percent of the country’s total CO2 emissions. During the signing agreement ceremony, the CEO of Fuel Conservation Company said that the government has already issued the licence for renewing 65,000 trucks worth $2.7 billion, the project of enhancing the railroad fuel consumption efficiency worth $7 billion, as well as enhancing the efficiency of 600,000 engine rooms (boilers) worth $2 billion as well. According to an of...