Electricity export checked with Energy Ministry – Iranian Oil Ministry
Baku, Azerbaijan, Feb. 15
By Khalid Kazimov - Trend:
Director General of the Public Relations of Iran's Oil Ministry Akbar Nematollahi in reaction to allegations that the ministry has been exporting electricity parallel to the country's Energy Ministry said that the exports have come only after they were okayed with the Ministry of Energy, ISNA news agency reported Feb. 15.
"There is some criticism that stems from lack of knowledge on the country's major policies," he said.
He said that since the Oil Ministry has made major plans for increasing its gas production, by the next Iranian calendar year (starting Mar. 21, 2015) the country will have surplus gas and it has to devise some ways to make optimal use of it.
"Studies have shown that in countries such as Turkey and Iraq, the demand for electricity is higher than demand for gas. So, policies have been made for us to join efforts in exporting electricity to these countries. Nevertheless, turning gas to electricity and then exporting it will come with some added value and is more profitable," he noted.
The official further explained that in line with the countries major policies on resistance economy, the Oil Ministry has been tasked with diversifying its ways of export, of which one is to join projects in electricity production.
He also explained that right after the decisions to implement the plan were made, the Oil Ministry announced publicly that any work in relation to the production of electricity had to be carried out as authorized by the Energy Ministry.
Iran's power plants generated over 238.19 terawatt hours of electricity since the beginning of the current Iranian fiscal year (March 20, 2014) to Jan. 27.
The figure showed a 5.46 percent increase compared to the same period of the previous year.
The Islamic Republic currently trades power with Turkey, Azerbaijan, Armenia, Turkmenistan, Pakistan, Afghanistan and Iraq.
According to the US Energy Information Administration, Iran is the second-largest proved natural gas reserve holder in the world, behind Russia. Iran holds 17% of the world's proved natural gas reserves and more than one-third of OPEC's reserves. Iran's largest natural gas field, South Pars, is estimated to hold roughly 40% of Iran's gas reserves. However, the vast majority of Iran's gas reserves are undeveloped.