Iran's energy sector review

Dalga Khatinoglu The share of gas in fueling Iran 's power plants is getting lower year-to-year, while expensive and polluting liquid fuels consumption rate in this sector dramatically increases. National Iranian Oil Refining and Distribution Company (NIORDC) announced on April 16 that during last fiscal year - which covers a period from March 20, 2013 to March, 20, 2014- supplying gas to power plants decreased by 8 percent, while the consumption of liquid fuels in this sector increased to 27 billion liter, indicate 19 percent increase comparing to the previous year. Iranian Fars News Agency quoted the Energy Minister Hamid Chitchian on April 10 as saying that 44 percent of burnt fuel in power plants was liquid fuels, including oil-gas and fuel oil during the last Iranian fiscal year. The annual statistics released by Iran 's Energy Ministry in March, indicate that the country's total electricity energy generation increased by 3.2 percent during the la...

Iran has exported averagely 504,000 barrels of gas condensate per day, since achieving an interim nuclear accord with Sextet powers in November 2013. Iran Custom Administration released a 229-page detailed statistics about the country's trade turnover during last Iranian calendar year, which ended on March 20. The report indicates that the country increased condensate export volume from 195,000 barrels per day during first eight months (March 20, 2013 to November 20, 2013) to 504,000 barrels per day during the last four months of Iran's calendar year, which covers November 21, 2013 to March 19, 2014). Iran's average condensate exports after nuclear deal is 258 percent more than before that. The U.S. and EU imposed tough sanctions over Iran's banking system as well as whose which targeted oil and petrochemical products exports in mid-2012, but some of sanctions, including petrochemical-related ones and insurance services for oil tankers have been eased due t...

Iranian government raised the price of some oil productions and gas production rapidly during the last three days. The price of kerosene rose by 44.3 percent, fuel oil by 20 percent, liquefied petroleum gas (LPG) by 210 percent on April 2, while the price of gas increased by 20 percent three days before. The steep increase in prices for energy products happened while the Iranian government had announced repeatedly that the rise of energy prices would be slow to prevent economic shocks, inflation growth and unbearable pressure on customers. The inflation rate in Iran is 32.1 percent. The budget law for the new Iranian year, started on March 21, allows the government to increase revenues by raising last year's energy prices from 388 trillion rials ($14.9 billion based on official USD rate) to $18.82 billion this year. Iran's refineries process above 650 million barrels of oil annually and roughly all of the produced fuels are consumed inside the country, while Irani...

Two Chinese companies have been selected to build a number of railway projects in Iran. The chairman of the city council of Iran's holy city of Qom, Seyed Mohammad Atashzar, announced March 17 that China's Norinco Company has been selected to build monorail and subway projects. At the same time an announcement was made that CITIC will also build a tram project, Iran's Donya-e-Eqtesad newspaper reported on March 18. China's CITIC Company signed a memorandum of understanding with the municipality of Tabriz, the provincial capital of Iran's East Azerbaijan province. Norinco has announced its readiness to sign a $834million (€600 million) deal to implementing a subway and tramway project. Earlier, other Chinese companies had voiced their interest in launching high speed railways between Qom-Tehran and Qom-Isfahan. According to Atashzar, the Chinese company is highly capable to meet the requirements of the project. It has so far built about one thousand su...

After two gas export contracts with Iraq to sell daily 45 million cubic meters (mcmpd) of natural gas, Tehran sealed a deal with Muscat to export 30 mcmpd of natural gas on March 12. It's expected the deal be implemented in three years. Iran holds 18 percent of global gas reserves, amounted at 33.6 tcm and produces 575 mcmpd of gas, approximately equals with domestic consumption level. However, the country is also expected to launch five phases of giant South Pars with 180 mcmpd of gas production capacity until 2017. The current production level of South Pars is about 300 mcmpd of gross gas, which of above 200 mcmpd is refined. Phases Production capacity development Implementation date Phase 12 81 mcmpd 92% completed until January 2014 2014 or 2015 Phase 15 and 16 50 mcmpd gas 92% completed until January 2014 2015 or 2016 Phase 17 and 18 50 mcmpd 82% completed until January 2014 2016 or 2017 During Iranian President Hassan Rouhan...