Iran hints at stopping export of gas condensate

Oil&Gas Materials 25 May 2020 13:04 (UTC +04:00)
Iran hints at stopping export of gas condensate

BAKU, Azerbaijan, May 25

By Elnur Baghishov – Trend:

One of the plans of the Iranian Ministry of Oil is to stop the export of gas condensate, Iran's Oil Minister Bijan Zanganeh told Eqtesad radio, Trend reports.

According to Zanganeh, thus, all produced gas condensate will be processed as fuel for gasoline and other petrochemical plants at the Iranian Persian Gulf Star Oil Company’s plant and Siraf refinery.

Zanganeh added that the Siraf refinery does not produce gasoline. The refinery produces products such as naphtha and these products are used as fuel in petrochemical plants.

"Iran's maximum gas condensate production is 1 million barrels per day," he said.

The minister said that Siraf refinery can produce some valuable products (gasoline, etc.) at minimal cost. For example, other refineries need $30,000 for produce one barrel of gas condensate. However, even if the Siraf refinery processes gasoline, it will cost $7,000-$8,000.

"If the Siraf refinery simply produces naphtha and sends fuel to Iranian refineries, it will cost $5,000-6,000," he said.

Zanganeh said that with the commissioning of the facilities under the second plan, Iran's petrochemical production potential will reach to 100 million tons and revenues - $25 billion a year.

At present, Iran produces 66 million tons of petrochemical products a year. The second and third plans are envisaged to increase the production of petrochemical products in Iran. Thus, it is planned to increase this production from 66 million to 100 million tons by 2022 and its revenues from $17 billion to $25 billion.

At the same time, by 2026, Iran's petrochemical sector is expected to increase production to 133 million tons and revenues to $37 billion.