Iran vying with UAE on bunkering in Persian Gulf
Baku, Azerbaijan, Oct. 7
By Fatih Karimov - Trend: Iran is competing with the United Arab Emirates on bunkering in the Persian Gulf.
The term "bunkering" refers to the practice and business of refueling ships. Bunkering operations are located at seaports.
Naser Sajadi, the managing director of the National Iranian Oil Products Distribution Company, said Iran's bunkering to ships, sailing in the Persian Gulf, has increased by 20 percent in the first half of the current Iranian fiscal year (started March 21) compared to the same period last year.
Over 2 million tons of fuel oil was sold to ships in the 6-month period, a 6.5 percent rise year on year, he said.
"Some 100,000 tons of diesel fuel was also sold, a 60 percent rise year on year."
Sajadi said in September that Iran sold 2.7 billion liters of fuel to ships and earned 110 trillion rials (about $3.1 billion) from bunkering in the two consecutive Iranian fiscal years, started from March 2013.
During the two-year period, 6.894 billion liters of fuel oil and 316.3 million liters of diesel were sold to ships.
Mostafa Kashkouli, an advisor to the managing director of the National Iranian Tanker Company, said on Aug. 7 that Iran hopes to boost its share of bunkering after sanctions against the country are lifted.
Referring to the establishment of Iran's bunkering association, he said that the move is aimed to increase Iran's share of bunkering in the region to at least 50 percent.
"At present, over 90 percent of bunkering is carried out by Persian Gulf states, especially the United Arab Emirates. Despite having high potential such as strategic location, long borders with Persian Gulf and Sea of Oman, and large amounts of fuel oil, Iran has a little share of bunkering mainly due to sanctions."
According to Iran's Energy Ministry's latest weekly report, during 220 days of Iran's fiscal year, which started on March 21, the country increased gas supply to power plants by 12.8 percent to about 35.124 billion cubic meters (bcm) and decreased fuel oil and gasoline consumption by 27.7 percent to 3.316 billion liters and 45.6 percent to 2.119 billion liters respectively.
Experts say a rise in bunkering is due to the fall in the supply of fuel to power plants.
Edited by CN