Iran's energy sector review

Iran says it is planning to increase petrochemical exports by 2016. After a huge plunge in Iran's both petrochemical production and export in 2012, the country re-boost the figures, but yet so far from the ideal level. Before sanctions were imposed in mid-2012, Iran was exporting about 21.226 million tons (MT) of petrochemical products worth $15 billion. But the figure decreased to 14.492 MT in a fiscal year corresponding to 2012 and this level had been kept unchanged until last year, when the figure increased by 18.8 million tons. During the first four months of the current fiscal year, started on March 21, Iran exported 8.171 MT, remained unchanged year-to-year, while the production volume stood at 15.66 MT. Iran also increased a petrochemical production level by 4 MT to 44 MT last year and planned to increase the figure to 51 MT in the current fiscal year. However, the nominal capacity of petrochemical production in Iran is around 60 MT. Now, Mehdi Sharifi Nikna...

Regardless of how well European oil companies were successful in penetrating Iran's oil market, Japan's oil giants have had restricted ties with Iran's energy projects, mostly focused on a petrochemical plant and an oil field. However, regarding the fact that the world's third economy, Japan, is the second biggest direct investor in the world after the U.S. and has progressive high technologies, Iran can enjoy cooperation with the Japanese in the energy sector. Official  statistics  show Japan’s outflow foreign direct investment (FDI) stood at roughly $119 billion in 2014, down from $135 billion in 2013. A Japanese delegation led by State Minister of Economy, Trade and Industry Daishiro Yamagiwa arrived in Tehran on Aug.8 for a two-day visit and held talks with Iran's senior officials, including Oil Minister Bijan Namdar Znganeh. The delegation comprises trade officials and executives of major Japanese industries such as Mitsui & Co., Kansai Paint Co....

The latest stats released by Iran's Energy Ministry indicate a huge change in power plants’ fuel feeds, while the output level increased significantly during last four months. According to the ministry’s weekly report, Iran's electricity output reached about 104 billion kWh in first four months and two days (126 days) of current fiscal year, while this figure was 101.5 billion kWh in the same period of last year (March 21 to July 24). On the other hand, during this period, the country's power production capacity increased by 373 MW (two 160-MW hydropower plants + 53-MW gas power plant). Iran planned to increase the current 73,525 MW power production capacity to 75,284 MW by the end of fiscal year (March 20, 2016). Despite these figures, the country's actual power production capacity stands at 57,759 MW. Iran’s electricity export fell by 17 percent to 3.336 billion kWh, while imports rose by 17 percent to 1.503 billion kWh in last four months. The country in...

When we talk about the importance of Iran in global energy security, its oil export is featured most often, but the volume and value of Iranian gas is even more than oil. Iran ranks forth in term of its 158 billion barrels of oil reserves, but first in term of 34 trillion cubic meters of gas reserves, which equals 240 billion barrels of oil equivalent. Iran produces 180 billion cubic meters of gas per annum (bcm/a), while it's oil output capacity is about one billion barrels. Domestically, Iran consumes 175 bcm/a of refined gas, which shares 67 percent of the country's total primary energy usage, while the figure for the consumed 600 million barrels of crude oil is about 25 percent. Iran planned to double gas output to 1.2 bcm per day (bcm/d) by 2018. Though this plan is so ambitious to be realized in the mentioned time, it doesn't undermine the perspective of country's upstream gas sector. Currently, Iran still faces a gas shortage despite a 100-mcm/d in...

Iran's liquid fuel consumption decreased dramatically during spring and reached 16.6 billion liters. The figure in last year's spring was 18.765 billion liters. The mentioned figures include gasoline, diesel, kerosene, and fuel oil, while Iran's liquid petroleum gas (LPG) consumption also reached 497,271 metric tons in the first three months of Iran's fiscal year, started on March 21, compared to 505,641 tons in the same period last year. Some 6.640 billion liters of gasoline, 7.263 billion liters of diesel, 2.371 billion liters of fuel oil, and 353.4 million liters of kerosene were consumed in spring this year. The figures indicate that gasoline consumption increased, while other liquid fuels decreased. The biggest factor in decreasing other types of liquid fuels is less use of gas-oil, fuel oil and kerosene in the power sector. According to the latest weekly report, published by Iran's Energy Ministry covering a period from March 21 to June 20, Ir...

Iran's ambassador to Turkey announced that the two countries reached an agreement to increase Iranian gas export to Turkey. The idea of increasing Iranian gas export volume to Turkey has existed for several years, but lack of infrastructure, dispute over price, lack of surplus gas in Iran, as well as imposed sanctions on this country prolonged the negotiations. Iran's Ambassador to Ankara Ali-Reza Bigdeli told reporters on June 23 “Iran and Turkey have reached agreement in principle on increase in the amount of gas flow from Iran to Turkey as well as relative discount Iran gives to the country”. His statement came after Turkey rejected Iran's proposal in April to give Turkey a discount if the volume on gas export doubles. Last year, Iran exported 9.76 billion cubic meters (bcm) of gas to Turkey, based on an agreement signed in 1996. Turkey has filed two complaints with the International Court of Arbitration accusing Iran of overcharging as well as citing the ...

Iran's power consumption hit a historic record on June 21, reaching 47.344 gigawatt (GW). This is the second historic record during the last two weeks and likely will be broken again with the start of summer on June 22. According to the latest weekly record, published by Iran's Energy Ministry on June 21, the actual power generation capacity of Iran's power plants was 56.856 GW (GW - unit for measuring power). However, Iran has a huge amount of electricity wasted. There is a huge power loss during the transmission and distribution process, which reaches around 56 billion Kwh (kWh - unit for measuring energy) , or more than 20 percent of total actual electricity energy generation capacity. Iran's actual electricity production level during a period from March 20 to June 12 stood at 276.1 billion kWh. However, Iran consumed 218.933 billion kWh, while the country's net electricity export reached 885 million kWh, during this period. During last fiscal year, en...