The center is established with the aim of collecting, assessing, and displaying online information on the production, distribution, and foreign trade of oil, gas, gas condensate, petroleum products, and naphtha.

As reported, the inauguration ceremony was also attended by the NIOC Managing Director Masoud Karbasian and NIOC’s Deputy Head Farrokh Alikhani, as well as other oil industry officials.

Speaking at the event, Alikhani who was the executive director of the monitoring center project, noted that all the processes related to the production and distribution of major oil and gas products are displayed online in this monitoring center.

According to Alikhani having access to up-to-date information and data in the oil industry will pave the way for making optimal decisions in various areas.

“In the monitoring center of the National Iranian Oil Company, all information related to oil and gas production and its quantity and quality as well as the processes related to supply and distribution are fully collected and displayed online at any time,” he explained.

Based on the information collected in this center, the share of each province, city, and even facilities in the country’s oil and gas production is known and this information can help the NIOC determine the share of each facility in the oil and gas production process and set priorities for reconstruction and renovation operations, accordingly.

According to Alikhani, the monitoring center of the National Iranian Oil Company also provides the ability to determine the amount of production in desired time periods making it possible to compare production in different time periods with each other.

Referring to the important position of the National Iranian Oil Company in the country’s economy, Alikhani pointed to the establishment of such a center as an inevitable necessity and expressed hope that with the addition of information from the downstream sectors, the center will play a more effective role in the oil industry in the future.

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Jalal Mir-Hashemi, the NPC’s director for the production control, put the three-month petrochemical output at 16.3 million tons, and highlighted that the petrochemical plants operated with a good capacity during this period, Shana reported.

With the measures taken and the sustainable supply of feed in the current year, the production of various products in petrochemical complexes has increased and while meeting the needs of domestic markets, the export programs have also been realized, Mir-Hashemi noted.

Emphasizing that Iran’s petrochemical industry is one of the most important pillars of the country’s development and the driving force of the economy, he said: “The main approach of the National Petrochemical Company is to complete the production chain, diversify the products, provide feedstock for domestic industries and increase the added value of the products in this industry.”

Mentioning the current year’s motto which is “Production: Support and Elimination of Obstacles”, Mir-Hashemi noted that the Iranian petrochemical industry is ready to achieve the goals of production growth in the current year.

“All conditions and infrastructure have been provided to achieve a leap in production in the Iranian petrochemical industry in the current year; with the measures taken this year, the idle production capacities of some existing complexes will also be revived,” he said.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the petrochemical export is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

According to Iranian Oil Minister Bijan Namdar Zanganeh, the country is currently producing nearly 70 million tons of petrochemical products annually and by the end of the industry’s second development leap, the country’s petrochemical production capacity is projected to reach 100 million tons per year.

The minister has pointed to the diversification of products, greater use of liquid feedstock, and land preparation, as some of the important factors to be taken into account for the future development of the petrochemical industry, and said: “In this industry, great work has been done in creating knowledge, indigenizing technologies, and cooperation with universities.”

The production capacity of Iran’s petrochemical industry is expected to be increased from 100 million tons to 133 million tons at the end of the third leap.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Oil Minister Bijan Namdar Zanganeh yesterday reiterated that the ministry refutes reports that it is to increase the price of fuel oil.

Speaking on the sidelines of a ceremony for signing 13 oil agreements in Tehran, Zanganeh said that he does not know who is behind this allegation that the government is to increase the price of fuel oil, rejecting all allegations on price hike of the fuel oil.

On the shortage of liquefied gas in Sistan and Baluchistan Province, he said that unfortunately citizens of the province are facing shortage of the liquefied gas, adding that he has ordered for shipping more liquefied gas to the province to meet the demands of the residents, and this problem will be resolved soon.

On the value of the agreements signed in the ceremony, Zanganeh said that these agreements are valued at over 1500b tomans. He said that these 13 agreements can boost exploitation from the oil and gas fields.

He said some nine more agreements had been earlier signed, adding that now 50 percent of national oil reserves are under coverage of these researches and hundreds of students and experts are working on them and will present hundreds of papers and articles.

Zanganeh praised the role and value of universities, saying that their value is not less than oil production in those oil fields.

He went on to say that university and industry should work together and they are correlative, adding that all should be patient because universities are the transplanted heart of oil industry and this transplantation has happened now.

He said this time universities stepped forward for signing the deal voluntarily and they welcomed the ministry’s proposals.

He also blasted the monopoly, adding that monopolization is not a good thing and competition is valuable.

Zanganeh also said that some good and important agreements have been signed in the downstream of oil industry which need support in order that the country can possess license and knowhow.

He also pointed to the beginning of the Sacred Defense Week, saying that jihad should continue in all layers of the life and today the country is alive because of efforts of unknown jihadis who continued their endeavors after the eight-year war in different fields.

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IRAN NEWS ECONOMIC DESK

TEHRAN – On the sidelines of a meeting, Oil Minister Bijan Namdar Zanganeh referred to the purchase of Iranian gas by Iraq and said that using Iranian gas is very economical for Iraq because natural gas replaces diesel, which is more than twice the price of the gas.

When asked the question that the Iraqi Minister of Oil has stated that its country does not need Iranian gas and will cut it off in the future, Zanganeh replied: “No, they have not said such a thing. They have signed contracts for gas production in Iraq because Iraq has the capacity to produce gas and can use it anyway, but this is time-consuming and now Iraqis are willing to receive a lot of gas from Iran.”

Zanganeh also mentioned in his meeting with people about renting foreign boats and said: “The Ministry of Oil has generally banned the leasing of foreign vessels and has given priority to leasing domestically built vessels.”

Regarding Iran’s gasoline reserves, the oil minister said: “Iran’s gasoline reserves had reached more than 5 billion liters in May, but now they have decreased due to exports.”

Zanganeh went on to say that in months of Ordibehesht and Khordad, the amount of stored gasoline hit 5b liters but currently due to exports, the figure has decreased and everything is getting normal.

He further said that developing CNG industry for the public transportation was another issue which was discussed in the meeting, reiterating that CNG is a priority for the ministry.

Zanganeh added that talks with knowledge-based companies for manufacturing equipment and offering services have started.

He emphasized that the ministry is determined to stop imports if the domestic-made equipment is high quality, and it is the policy which is pursued in any section of the ministry.

He further said competition is a main factor for improving the quality, admitting that currently the number of foreign companies in the country is insignificant and there is no high competition in the country which is not good at all but this is a good opportunity for growth of domestic companies.

Zanganeh noted that all needed equipment by the oil ministry, which is domestically-made, is studied by the related bodies and in case its quality is verified the purchase, import of its similar foreign-made counterpart will be banned.

Establishing the organization for issuing quality certificate was a major move which started two weeks ago, and this organization assures consumers of the quality of the domestic-made goods and their standards which are needed by the oil industry, the minister added.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Oil Minister Bijan Namdar Zanganeh says over 70 percent of equipment needed for the recent oil contracts are produced in the country.

Speaking at a ceremony for granting the first quality certificate at Iran Petroleum Institute (IPI), he said today Iran is in a position that it has set up a body for issuing certificates for oil goods and equipment, adding that this was done hardly but ended successfully.

He added that one of the important pillars for supporting the domestic production is to launch a body for issuing quality certificate.

Zanganeh noted that in the past, domestic producers had to get quality certificate from the foreign institutes but sanctions deprived them of this opportunity.

He further said the oil industry could not use non-standard equipment, adding that risk in the oil industry is high so that even a simple error may cause a national disaster.

He then pointed to the blast in Beirut, adding that it happened with a small error ignoring the standards.

He referred to the recent oil contracts, adding that in more than 70 percent of the agreements, domestically-made equipment will be used.

Zanganeh added that a national body needs to check standards and issue quality certificate, noting that national standards have been drawn up with the country’s condition, reiterating that the national body should be impartial and an NGO.

He said in the first step, the ministry revived the Iran Petroleum Institute (IPI), adding that the institute has turned into an NGO and all responsibilities for creating infrastructures for issuing certificates have been handed over to it.

He reiterated that the newly established body is an important step in the national oil industry, reiterating that the body can be used by other countries, too.

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IRAN NEWS ECONOMIC DESK

TEHRAN – National Iranian Gas Company (NIGC) Dispatching Director Mehdi Jamshidi Dana says although Turkey has announced it would receive necessary equipment for repairing the exploded gas pipeline, the reason behind its delay is still unknown

Speaking to ILNA, Jamshidi Dana said that Iran has officially announced its Turkish partner its readiness to dispatch necessary equipment and skillful forces for repairing the gas pipeline and it has no problem.

He went on to say that he does not understand the reason behind Turkey’s delay for repairing the pipeline and resumption of receiving gas, admitting there are several assumptions but the main reason is vague. Jamshidi Dana once again reiterated that Iran can repair the pipeline in a week.

On the extension of contract for gas exports to Turkey, he said the outbreak of the Coronavirus has delayed the talks for extension of contract but it is on the agenda and there is no problem.

Meanwhile a member of energy commission of Majlis said according to the international obligations, Iran should export gas to Turkey according to the contract and Turkey should get it.

On the possible U.S. pressures on Turkey for not buying Iran’s gas, Reza Bakhtiar said the relation between Iran and Turkey has been good and amicable even in the sanctions era and it does not seem Turkey to stop buying Iran gas due to the U.S. sanctions because they know that sanctions are temporary.

Earlier on Monday, Oil Minister said Turkey had been delaying repair work on blown-up gas pipeline with no clear reason.

Bijan Namdar Zanganeh said he was unaware why Turkey had been delaying repair work on an Iranian gas pipeline that was blown up in late March.

“I don’t know for what reason the repair has been delayed,” said Zanganeh, adding that such repair works usually takes several days to complete.

The comments come against then backdrop of reports suggesting that Turkey is deliberately delaying the repairs on the gas pipeline that was blown up on March 31. Those reports say Ankara is trying to get a price reduction from Iran while it also seeks to appease the United States which pressures other countries to halt energy trade with Iran.

Zanganeh said that Turkey has also refused to allow Iran to carry out the repair work on then gas pipeline.

“We declared that we are ready to repair this pipeline for them but the Turks did not welcome this proposal,” he said.

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IRAN NEWS ECONOMIC DESK

TEHRAN- Oil Minister Bijan Namdar Zanganeh said that stockpiling gasoline in his country has reached an “unprecedented historic level” due to falling demand.

Speaking at a meeting of oil industry officials in Tehran, Zanganeh explained that both foreign and domestic demand has fallen as a result of the coronavirus pandemic.

He also spoke of falling profits for refineries and the postponement of oil projects in the country. Apparently as a result of less oil production, petrochemical plants receive 40 percent less oil by-products needed for their own production.

Last year, the average daily consumption of gasoline in Iran was 97 million liters or around 25.5 million gallons. But after the start of the pandemic, consumption has fallen to 65 million liters a day in the last two months.

The pandemic has hit fossil fuel prices hard, with oil trading at half the price of three months ago. Iran was counting on reasonably high gasoline prices this year to make hard currency by exporting it to regional countries.

Zanganeh also said that Iran’s oil rig count has risen by 20 units even as major producers across the world, especially the U.S. oil and gas industry, are stepping heavily on the brake pedal and reducing drilling at record speed because of the new coronavirus.

He further said the spread of the disease did not stop Iran’s oil production, “thanks to persist efforts in the oil industry to protect the health of our employees”.

Iran’s oil-rich Khuzestan province has seen a spike in coronavirus cases, forcing authorities to close offices and impose travel restrictions in nine counties, including Abadan which is a major refinery town.

Elsewhere across Iran, the government has begun easing restrictions on normal life as new cases of infection have continued to decline.

The disease has hit the global oil industry hard, leading to a sharp decline in crude oil and products prices amid a slump in energy demand which has resulted in a rise in crude oil and products stocks, Zangeneh said.

“Gasoline storage in Iran has already reached an all-time high,” he said during a meeting with his deputies and Vice President Es’haq Jahangiri in Tehran.

Despite being a major oil producer, Iran was a gasoline importer for almost four decades because local refiners could not meet growing demand. The imports had turned into a strategic vulnerability for Iran which has been facing round after round of Western sanctions for years.

That ended early last year when Iran brought a major refinery project in Bandar Abbas online, making the country self-sufficient in gasoline and producing some surplus for export.

The coronavirus has also caused a temporary suspension of some upstream and downstream projects in the oil industry, especially the Pars Special Economic Energy Zone which handles Iran’s giant South Pars oil and gas resources, Zangeneh said.

Iran’s sprawling petrochemical industry is not unscathed. “A 40 percent drop in feedstock supplies in downstream petrochemical units from last year, a shutdown of most bitumen production sectors and a drop in sales of petroleum products are other effects of the coronavirus outbreak,” the minister said.

However, “our analysis is that the jobs which have faced difficulties in the oil industry will be revived; they will not be eliminated from the country’s employment cycle”, Zangeneh added.

On Tuesday, the National Iranian South Oil Company said 20 oil rigs laid down by the Ministry of Petroleum will be put be back to work.

Zangeneh has said Iran’s oil, gas and petroleum sectors are on the frontline of the fight against the United States’ “maximum pressure” which President Donald Trump has primarily applied on the oil industry because it accounts for a big chunk of Iran’s hard currency earnings.

Iran has unveiled its first oil rig manufactured by domestic companies, fulfilling a dream which the country’s petroleum industry cherished for long.

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“The Americans are concerned about the security and safety of oil distribution, and we have always said that for the safety and interests of producers and customers, oil must not be wielded as a weapon,” Zanganeh said.

“Oil is not a weapon, but a public commodity needed by all. It must be allowed to be freely traded in markets,” he added.

Zanganeh then announced that Iran’s production at the South Pars gas field will reach 750 million square meters by the year end.

He said he has no information regarding the reports on Saudi Arabia’s request to import gasoline from Iran.

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