Iran's energy sector review

The Iranian government has announced construction plans for four pipelines at a cost of $12 billion. Of the four planned natural gas pipelines, three will be designed for export and one is aimed at cutting gas imports. The information portal of Iran’s Oil Ministry reported on January 12 th  that the government plans to facilitate the construction of the 6 th , 9 th , and 11 th  cross-country gas pipelines. According to  Shana News Agency , the 6 th  and 9 th  cross-country routes are among the country's projects aimed to export natural gas towards west, including the European Union. The 11 th  cross-country pipeline will pump gas from the South Pars gas field towards the northwestern province, Khorasan, to make this region self-sufficient instead of relying on Turkmen gas imports. Iran has two contracts with Turkmenistan to import 40 million cubic meters of gas per day (mcm/d) and currently imports about 30 mcm/d Turkmen gas. Iran's plans for...

The latest statistics about the country's liquid fuel consumption indicates a 3.4 billion liter decrease during the last none months, mostly due to delivering more natural gas to power plants. This pushed the diesel and fuel oil burning in this sector lower. However, the details of consumed various energy carriers imply that Iran's liquid fuel consumption would likely remain unchanged compared to last fiscal year. Iran's fiscal year starts on March 21. Iran delivery of 160 billion cubic meters (bcm) of dry gas to domestic sectors during the last nine months increased 12 percent. While, according to the official statistics, the country consumed about 60 billion liters of liquid fuels (gasoline, fuel oil, diesel and kerosene) during this period, 3.349 billion liter less than the same period last year. The details of consumed liquid fuels indicate that among liquid fuels, only the consumption of fuel oil and kerosene decreased by 27 percent and 10 percent respecti...

The latest statistics released by Iran Custom Administration indicates a drop in the country's natural gas condensate export volume. The gas condensate shares about 30 percent of Iran's total oil exports; it plunged after the imposition of tough western sanctions on Iran in mid-2012 and then soared suddenly after an interim nuclear deal was achieved in November 24, 2013. Before imposition of western sanctions on Iran, the country was exporting about 270,000 barrels per day (bpd) of gas condensate. This figure plunged to around 170,000 bpd in mid- 2013, but suddenly rose after Iran and P5+1 reached an interim nuclear accord. Iran had stored a huge amount of unsold condensate during 2H12 to 3Q13 and exported that after Nov.2013. There are no accurate statistics about the real sold condensate, because the Custom Administration data covers the loaded and exported amount of gas condensate, rather than sold volume. For instance, the director of the International Affair...

The latest announcement by a high-ranking Iranian Oil Minister's official indicates that the country's primary energy consumption has increased by 17.9 percent since March 2012. The head the National Iranian Gas Co. Hamid Reza Araqi said on Dec.29 that the country's gas consumption is about 4 million barrels of oil equivalent (BOE) per day, shares about 75 percent of the country's total primary energy consumption, Shana repoeted. Then the total primary energy consumption in Iran is currently about 5.33 million BOE. According the latest annual report of Iran Energy Efficiency Organization, released early 2014 and covers the statistics of a fiscal year to March 2012, Iran's energy consumption was 4.38 million BOE per day. Iran's fiscal year starts on March 21. Then with comparing the figures mentioned above, gas consumption increased by 710,000 BOE per day. Below is Iran's fossil energy carriers consumption per day according to the data derive...

Iranian government undertakes about $80 billion energy subsidy annually, more than the country's total exports. However, the figures on Iran next fiscal year's budget, which will begin on March 2015, indicate almost no change in energy prices compared to the current level. The Iranian government has increased the energy carriers prices twice since 2010 based on implementation of a Subsidy Reform plan, but cheap energy still motivates people to consume more energy. Energy carrier USD current exchange rate: 35,400 rials Global prices (NYMEX-2014/2015) Consumption Per day A cm of gas 2.8 cent 11 to 16 cent 500 to 520 mcm A liter of gasoline 28.6 cent 57 to 75 cent 67 million liter A liter of LPG 6.26 cent 21 to 37 cent 5,500 tons A liter of diesel 13.43 cent 67 to 78 cent 100 to 105 million liters A liter of Kerosene 4.47 cent 48 to 64 cent 8 million liters A cm of CNG 16.53 cent 27 cent 18 mcm Electricity ...

OPEC oil basket price slipped below $58/barrel on Dec.15, losing 46 percent of its value since mid-June. According to the OPEC's official website, the cartel's oil basket was sold at $57.92 on Monday, reaching the lowest since five years ago. With regarding the oil decline pace during last 6 months, a half of dropping oil price falls on a period from mid-June to mid-Nov, while another half falls on mid-Nov to mid-Dec. On the other word, the drop of oil price in the international markets was more accelerating during last month than the previous months. The huge and speedy drop of oil price, actually implies that the markets is going to be out of control, but who would win or lose from the current situation. Of course, in case the producers continue to keep oil production growth in the current pace in mid-term, it seems the global economy would face problems. It's expected that oil price collapse in current level is worth 1.3 trillion US dollar of stimulus for ...

Although Iran boosted exporting its oil products, but a look at the country's oil production revenues during the last several months indicate a huge drop in prices. Iran's most valuable exported oil products include propane, butane, tar, fuel oil as well as some petrochemical products. Iran's heavy oil price has fallen from about $110 in mid-June to below $68 currently. The country exported about 1.2 to 1.25 million barrels of crude oil and condensate per day in average during ten months of 2014. This figure during 2011 and 2013 was about 2.5 million and 1.07 million barrels per day. Iran's petroleum export revenues ($ billion) based on the Central Bank of Iran's statistics Iran's Custom Administration's latest monthly report, released on Dec.5 indicates that the country's oil product exports have soared since March 21, when Iran's current fiscal year started, but their price has dropped significantly during the last several months as ...