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Iran saves $10B through replacing liquid fuel with gas

Business Materials 1 March 2015 14:41 (UTC +04:00)

Baku, Azerbaijan, March 1

By Fatih Karimov - Trend:

Iran has saved $10 billion through replacing liquid fuel with natural gas in power plants.

Hamid Reza Araqi, managing director of the National Iranian Gas Company, said the volume of gas delivered to power plants rose by 13 billion cubic meters during the first 339 days of the current Iranian fiscal year, began on March 21, 2014, compared to the same period in the past year, Iran's Shana news agency reported on March 1.

This issue has had a great effect on reducing air pollution, he said.

Iranian power plants consumed over 47 billion cubic meters of gas since the beginning of the current Iranian fiscal year, and the figure is expected to reach 50 billion cubic meters, he added.

The Islamic Republic faced severe gas shortages last winter.

In addition to cutting the gas supply to power plants, which led to burning of $30 billion worth liquid fuels, the Iranian government had to decrease gas delivery to petrochemical plants from 1,236 million to 530 million cubic feet. That caused a drop in the petrochemical production by 7.5 million metric tons during the last fiscal year (ended on March 21, 2014).

It should be noted that Iran holds 33.6 trillion cubic meters of proven gas reserves, sharing 18 percent of total global gas reserves, which puts the country in the top of the world's gas holders list.

However, the lack of proper technology and investment led to long-term delays in implementation of gas production projects.

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