Iran kicks off exporting commodities to EU, Americas

Business Materials 24 February 2016 19:09 (UTC +04:00)

Baku, Azerbaijan, Feb. 24

By Khalid Kazimov - Trend:

Iran has exported over 22.753 million tons of commodities through the South Pars Special Economic Energy Zone between 21 March 2015 and 20 Feb 2016, an Iranian official with customs service said.

The head of the customs services of the Pars Special Economic Energy Zone, Khodad Rahimi, has said that the commodities have been shipped to 29 countries including seven European and American countries, IRNA news agency reported. However, he did not name the European and American countries that imported the commodities. Khodad Rahimi further estimated the value of the exported commodities at $11.561 billion which indicates 14 percent growth in weight compared to the same time last year.

According to the official the exported commodities include condensates, methanol, light and heavy polyethylene, diethylene glycol, monoethylene glycol, triethylene glycol, urea, butane, propane and paraxylene.

According to Rahimi the condensate exported from the zone weights about 10 million tons. According to the Trade Promotion Organization of Iran, the country in total exported 13.812 million tons of condensate worth at $ 5.801 billion in the first 10 months of the current fiscal year (starting March 21).

The figure has dropped by 19 percent in weight and 54 percent in value year-on-year. Earlier in January US Energy Information Administration (eia) said with Iran's petroleum and other liquid fuels consumption expected to remain flat over the next two years, crude oil and other liquid fuels from the production increase is likely to be sold in export markets. According to the eia, the pace that Iran will ramp up its exports now that sanctions are lifted is uncertain.

Iran has a considerable amount of oil stored offshore in tankers (between 30 and 50 million barrels), most of which is condensate, and crude oil stored at onshore facilities. Initial post-sanction increases in Iranian exports will most likely come from storage, while meaningful production increases will occur after some of the storage is cleared.