Iran's energy sector review

As Pakistan blames the sanctions imposed on Iran for delaying gas intake from this country, however a Pakistani official claims there is another reason. Pakistani Parliamentary Secretary for Petroleum and Natural Resources Shahzadi Umerzadi Tiwana said that Qatar's LNG price is lower than the price of Iran's natural gas. that of Iran. In particular, she mentioned the recent $16-billion deal with Qatar, saying that Qatari LNG is low priced as compared to gas that Iran would be supplying to Pakistan. According to Pakistani sources, LNG arriving in any particular month will fetch 13.37% of the preceding three-month average price of a Brent barrel (considering the present Brent price as a proxy, that would equate to $167.5 per 1000 cubic meters). Comparing the figure with the revenues of Tehran gas deals with Turkey and Iraq, it indicates that Iranian gas wouldn't compete with Qatari LNG on Pakistani market. In 2014 Iran was exporting gas to Turkey at above $420 ...

Iran’s industrial GDP growth experienced a 11.94 percent contraction during 9 months of the current fiscal year (started on March 21, 2015), said the head of Tehran Chamber of Commerce Masoud Khansari. Khansari noted that the index of Industrial production has shown negative figures in all spheres, except for pharmaceutical and food industries. The growth of industrial production index during the fall was 24.8 percent, compared to last year, he said. The share of industry in Iran’s overall GDP was 11.83 percent during last year, the Statistical Center of Iran reported. The center put Iran's GDP growth at 1 percent in the first half of the fiscal year. However, the International Monetary Fund estimated that the figure would stand between -0.5 percent and +0.5 percent in the current fiscal year. Meanwhile, the World Bank seems to be more optimistic, putting the figure at 1.9 percent during a period from March 2015-March 2016. On the other hand, the Central Bank of Iran p...

Iran's primary energy consumption reached 4.428 million barrels of oil equivalent per day during the last fiscal year (ended on March 20, 2015). The latest National Iranian Oil, Refinery and Distribution Company's (NIORDC) report indicates a 4.7-percent increase in the country's energy consumption year-to-year. The report says the country consumed 84 billion liters of liquid fuels with worth $48 billion. Liquid fuel consumption 2014/2015 (Million Liters/day) Y/Y change (%) Gasoline 69.591 1.7% Kerosene 10.059 -15.5% Diesel 100.158 -5% Mazut 36.69 -27.7% Iran produced about 59.6 million liters of gasoline per day, while the consumption level was 69.6 million liters during last fiscal year. Iran's natural gas consumption also increased by 12 percent year-to-year and reached 472 million cubic meters per day (mcm/d), of which 29 percent was consumed by power plants, 19 percent by industrial sectors and 52 percent in housing ...

By Dalga khatinoglu Tehran and its potential customers have shown interest in gas deals at home and abroad once the sanctions on Iran have been lifted. But some buyers will be disappointed. Production of dry gas and associated gas will eventually reach 1.11bn m³/d on the basis of what is already planned, while demand at home and abroad totals 1.13bn m³ in the shorter term. Iran has contracts with Iraq, Oman and Pakistan to export 50mn m/d, 28mn m 3 /d and 22mn m 3 /d in the coming years. It already exports 28mn m³/d to Turkey; while on the credit side are 20mn m³/d from Turkmenistan. Iran also wants to export gas to Europe using floating LNG plants, and liquefying gas for export either at home or using spare capacity in Oman. But none of these projects are expected to be realized by 2018. On top of that, it needs more gas than ever for use at home: to enhance oil recovery; to grow its large foreign currency-earning petrochemicals sector; to replace other fuels in the...

Iran boosted the share on natural gas consumption in power plants to above 80 percent by delivering 46.847 billion cubic meters (bn m³) in 9 months, which indicate a 16.8% percent growth year-to-year. Iran's fiscal year starts on March 21. the consumed gas amount, mentioned above, indicates that above 42 percent of Iran's total produced sweet gas during spring, summer and fall (110 bn m³ ) was consumed in power sector. During this period (March 21 to Dec 31), Iran's power sector also consumed 4.342 billion liters of diesel (- 38.4%) and 5.278 billion liters of mazut (-31.5%). The statistics of Iran's Energy Ministry indicate that the weekly gas delivery of gas to power plants decreased from 1.4 bn m³ in spring and summer to about 0.8 bn m³ in fall, while the figure plunged to around 0.5 bn m³ in winter. Two reasons pushes gas delivery to Iran's power plants down in cold season: - The country's power demands soars in warm months, while in cold seas...

Iran's energy sector, like other industrial sectors experienced low growth in 2015, despite a relatively boom in the previous year, mostly because of the budget shortage due to plunging the oil price, which the country heavenly depends on petrol dollars. The International Monetary Fund estimated that Iran's oil revenues decreased by $20.1 billion to around $35 billion the current year, while GDP growth is estimated to be about -0.5 percent to 0.5 percent. According to OPEC's statistics, Iran's heavy oil price almost halved in 11 months of 2015 to about $50/barrel. However, according to Iranian media outlets, the figure even plunged to below $30/barrel in min-December. Coming to upstream sector, the country's oil output remained almost unchanged, while the gas condensate output increased slightly. In total, according to the US Energy Iran's total crude oil production (including gas condensate) stood at 3.3 million barrels per day in 9 months of 2015, indic...

One of major companies, offering about 30 percent of total offered oil and gas projects to foreigners in framework of new designed contact, called Iran Petroleum Contract (IPC), is Iran's Central Oil Fields Company (ICOFC). Managing Director of ICOFC Salbali Karimi told Mehr News Agency on Dec.23 that the total value of offered projects is above 10 billion euro. During last month, Tehran hosted 137 companies from 45 countries for a two-day conference, during which legal generalities of IPC were introduced. Iran has offered 50 hydrocarbon fields, of which 17 projects belongs to ICOFC. Karimi said a daily average of 100,000 barrels of crude oil is currently produced in central oilfields of Iran and the figure is planned to double in two stages and reach 350,000 barrels per day by 2021. Recalling that recoverable crude oil reserves in Iran’s central regions add up to a total of 10 billion barrels, the official said “moreover, a sum of 7 trillion cubic meters of recoverable na...