Iran's energy sector review

By Dalga Khatinoglu, exclusively for Iran’s Oil Ministry’s  magazine  * Iran is preparing host to a summit of the world’s major gas producing countries next week. The meeting of the Gas Exporting Countries Forum (GECF) on 23 November brings together such major producers as Russia, Qatar and Algeria as well as Iran. Together, the GECF’s 12 member countries account for 67% of the world’s gas reserves, for 64% of global LNG exports and for 42% of cross-border pipeline trade. Iran with 34 trillion cubic meters of gas reserves ranks number one in the world, but the huge amount of domestic consumption allows the country to export only about 30 million cubic meters per day (mcm/d) of gas despite a 700-mcm/d production level. However, in the light of country's hope for lifting of sanctions in the first half of 2016 as well as accelerating development of giant South Pars, Iran is preparing to become a major gas exporter in medium term. Coming to GECF, Iran advantages a uniqu...

Statistics reveal that Iranian exports and imports have fallen drastically in the seven months since the beginning of the current Iranian fiscal year on March 21. A detailed report by the Iranian Customs Administration, published on November 10, indicates that the country’s non-oil exports fell 15 percent in the period, compared to the same period in 2014, to reach $24.131 billion. Further, according to the report, the country’s imports plunged 21 percent, reaching $24,076 billion, indicating that the value of Iran’s non-oil exports is more than its imports. The major reason behind the decline in exports has been the reduction in revenues from oil-related goods. Iran includes some of these goods when measuring its non-oil basket. For example, oil condensates, a kind of ultra-light crude oil, comprises over 20 percent of the country’s reported non-oil exports. Although Iran’s exports of these products have increased some two percent in the 2015 period, its value declined 41 per...

An Iranian top oil official announced that representatives of a Russian company are scheduled to visit Iran to talk about oil, gas and oil product swaps. Amir Hossein Zamaninia, the Islamic Republic’s deputy oil minister did not reveal additional information about the company or the date of the visit, but Gazprom is the solo Russian gas exporter, while the country's largest oil producer Rosneft has asked the government to end Gazprom's decade-long exclusive right to export pipeline gas in July. CEOs of both Russian companies were in Iran among a delegation headed by Russian Energy Minister Alexander Novak last month. The issue of oil and gas swaps was discussed during the visit of Novak to Tehran last month, Zamaninia said, adding that the two parties emphasized concluding contract negotiations on the issue. Prior to the introduction of sanctions, Iran was an active participant in swap operations, which began in 1997 on the basis of signed contracts. From 1997 to 200...

By Dalga Khatinoglu, John M. Roberts, exclusively for  IRNA The article was written Dalga Khatinoglu, expert on Iran's energy issues, head of Iran news service at Trend Agency. With the assistance of John M. Roberts, Chief Analyst and Head of Strategy, Natural Gas Europe. Roberts has testified to UK parliamentary committees on Caspian, Russian, Turkish, Kurdish and Mideast energy security issues. He is a Senior Partner with Methinks Ltd, a consultancy specializing in the inter-relationship between energy, economic development and politics. He is also a Senior Fellow at the Atlantic Council of the US. He was previously a Managing Editor with Platts and Financial Times Energy. Iran is preparing to play host to a summit of the world’s major gas producing countries against a background of rising prospects for major Iranian gas exports in the near future despite persistently high domestic demand. The meeting of the Gas Exporting Countries Forum (GECF) on 23 November brings to...

The government of Iran's East Azerbaijan Province says currently about $2 billion of commodities produced in this province are exported, but the figure will double in two years. Esmaeil Jabbarzadeh told Trend on Oct. 22 that Iran and Azerbaijan have quite significant potential to boost trade and financial relations, establish joint ventures, cooperate in joint projects, increase bilateral trade and boost goods transport through their territories to other countries. According to an Iran Custom Administration's report, the country exported $132.8 million worth commodities (-44.66%) to Azerbaijan in first half of current fiscal year, while its import from Azerbaijan Republic reached $10.7 million. Iran's fiscal year starts on March 21. The report says that $485.165 million worth of commodities was exported from East Azerbaijan's customs and the import value reached $535 million during this period. The figures includes the exports at four major customs of provin...

Iran's Judiciary System issued a verdict and closed Tabriz power plant, which provides a half of province's electricity and shares 1.8 percent in total Iran power output. The closure of the power plant caused electricity outage in a half of households in Tabriz on Oct.20. The three-decade old 650-Mw power plant was designed and constructed by the French company Alstom. It's efficiency is 36.7 percent and worked 20.6 hours per day in 2013. According to the latest statistics, released by Iran Energy Ministry, this power plant consumed 1.05 billion liters of fuel oil, 517,000 liters of diesel, as well as 135 million cubic meters of natural gas in 2013, a year that Iran had to use 36 billion liters of liquid fuels in power generation sector due to gas shortage. The reason for closing Tabriz power plant based on the court's verdict was increased fuel oil consumption and air pollution. The Iranian government increased gas delivery to power plants to about 50 billio...

Indonesian Energy and Mineral Resources Minister traveled to Tehran to evaluate bilateral relations and possible cooperation opportunities on October 13. A meeting is scheduled between Iranian Oil Minister Bijan Namdar Zanganeh and Sudirman Said as well. The visit came, while Iran is preparing to resume crude oil exports as soon as the international sanctions be removed in early 2016 and raise this volume to presumptions level at 2.2 million barrels per day. However, considering the glut in oil markets, Iran even hasn't been able to increase oil export after reaching a comprehensive nuclear deal on July 14, expected to propel Iranian oil exports. Indonesia became a net crude oil importer since late 2013, but the energy cooperation between Tehran and Jakarta is expected to be so deeper and wider than just crude oil export issue. Just a year ago, Iran announced that it is preparing to build five refineries in Indonesia, aimed to diversification of Iran's oil export. Th...