TEHRAN (Iran News) Using the domestic surplus of LPG instead of exporting it in raw form can reduce the financial pressure of gasoline imports and, at the same time, significantly help diversify the country’s fuel portfolio.

Its lower price, domestic availability, and lower pollution compared to gasoline are the main driving factors behind this plan. The most important part of the decision is the direct reference to the risks which—if neglected—can turn the entire plan into a new crisis in the social, safety, environmental, and economic domains.

The distribution network, refueling stations, and standard installation systems are, of course, not ready, and they are costly. In a situation where the government has to think about every single rial it spends, this will also be time-consuming.

It must be acknowledged that neglecting non-standard vehicle conversions—which pose a major threat to public safety—will undoubtedly create serious problems. In Iran, it has already been experienced that without precise and continuous supervision, standards either remain only on paper or are implemented incompletely according to group interests and, at times, even individual ones.

In summary, I must emphasize that the fate of this plan—exactly as mentioned—depends on “precise energy governance.” Its success requires an immediate and decisive operational program.

Building standard LPG refueling stations for vehicles and developing a safe transportation network will be the key to success.

Setting precise technical specifications for parts and installation, and granting permits only to qualified conversion centers, is also important.

The next point is establishing a strong regulatory body to inspect the sources of converted vehicles and the fueling stations. Educating citizens about the benefits, risks, and safe usage is the essential first step.

If the government pursues these requirements seriously, transparently, and rapidly, LPG can play an important role in reducing dependence on gasoline and overcoming the current multifaceted crisis. Otherwise, the risk of turning this opportunity into a new and more complex problem will be very real.

The post LPG, a Substitute for Gasoline appeared first on Iran News Daily.

Speaking in the southern province of Bushehr on the occasion of the government week, Javad Owji said that the country would also become self-sufficient in the production of propylene from propane in the near future.

After launching 27 social responsibility projects, he said: “We promise that launching of such projects will continue.”

The minister of petroleum further issued an order for the operation of phases 3, 4, and 5 of Iran LNG Company and stated: “The liquefaction and sweetening units of this complex have not yet been completed, but the power generated by it is being injected into the power grid in Assalouyeh and Bushehr Province.”

Referring to the construction of the propylene from propane (PDH/PP) production project of Parsian Sepehr Refining and Pars Petrochemical Company, Owji emphasized: “One of the essential projects of the petrochemical industry is the conversion of propane to propylene, which is also important for the petrochemical supply chain.”

He added: “According to the planning, we will start construction of propylene production complexes from propane, and in the next few years, we will reach self-sufficiency in this area; with this work, good employment will be provided in this region for the local forces and specialists of Bushehr province.”

The Oil Minister also said: “The Research Institute of Petroleum Industry (RIPI) has also obtained the Polypropylene (PP) technical license and this sector has been completely localized.”

Meanwhile the CEO of the National Iranian Oil Company (NIOC) said a foreign direct investment (FDI) of 100 million dollars has been allocated for establishment of a liquefied petroleum gas (LPG) export terminal in Iran.

Mohsen Khojastehmehr said that liquefaction maximizing LPG export is one of the main priorities of NIOC under the Raisi administration, adding: “In this regard, we found it necessary to strengthen a private company, and the powerful Petrosanat Iranian Company entered this field.”

Acknowledging that NIOC had asked the company to build an LPG export terminal, he said: “This private sector company built a terminal with an investment of about $100 million, along with other terminals in the region, and according to the directive issued by the Oil Minister, the land that was previously leased to the company was now owned by it.”

The post Iran LPG Export Grows 20% appeared first on Iran News Daily.

Barati said the production and exports of LPG from some development phases of South Pars gas field (which Iran shares with Qatar in the Persian Gulf) has experienced a 100-percent growth in the past Iranian calendar year (ended on March 20), IRIB news reported.

The post Iran seeking new LPG customers appeared first on Iran News Daily.

The country exported 520,000 million tons of LPG in January, making a strong start in 2018, the data showed.

The latest volume is 146,000 million tons more than initial figures published in mid-January, according to shipping sources. It is also up 39.4% from 373,000 million tons in December 2017.

Iranian exports are helping to fill shortfalls of spot supply from the Middle East, as major producers Saudi Arabia, the UAE, Qatar and Kuwait are exporting less spot cargoes as they focus on fulfilling term contracts and meeting domestic petrochemical demand, Platts reported.

Preliminary figures so far showed 132,000 million tons fixed for lifting in February in three cargoes, shipping sources said.

The post Iran’s January LPG export highest since sanctions removal appeared first on Iran News Daily.

The initial shipment program shows about 199,000 mt of LPG will be lifted in December, down slightly from 220,000 mt in November, though trade sources said more shipments could still be fixed.

If more cargoes were to be fixed, it would signal a slow recovery in Iranian LPG exports.

The December estimate takes shipments from Iran for the year to date to about 3.33 million mt.

The latest volumes are destined for China, Indonesia, Africa and possibly South Asia, according to cFlow, S&P Global Platts ship-tracking software.

Before the July 2012 Western sanctions, which were lifted in January 2016, Iran exported more than 400,000 mt/month of LPG, mainly to Asia, sources said.

Monthly Iranian shipments have been slipping since touching a year-to-date high of 423,000 mt in August because of reduced output at the South Pars gas field, sources said. The field returned from maintenance around mid-November, but condensate production remained low immediately after that, which also kept LPG exports subdued.

Rising domestic consumption since the maintenance has also prompted the National Iranian Oil Co., or NIOC, to cap condensate exports at a similar level to during the field maintenance, Platts had reported.

Iranian Oil Minister Bijan Zangeneh said last Thursday the country’s crude oil production was now around 3.8 million b/d, along with 400,000 b/d from condensates, while crude oil and condensate exports combined stood at more than 2.5 million b/d.

International trading firms Petredec and Glencore lifted cargoes from Iranian ports in December, shipping sources said.

Petredec loaded at Assaluyeh a 44,000 mt evenly split propane/butane cargo from Iranian Gas Commercial Co., or IGCC, aboard the VLGC Pacific Shanghai. The vessel is now in the Gulf of Oman en route to Kalbut in Indonesia, according to cFlow, S&P Global Platts ship-tracking software.

Glencore loaded from Bandar Imam Khomeini an 18,000 mt parcel, comprising 4,000 mt of propane and 14,000 mt butane, from Persian Gulf Petrochemical Industry Commercial Co., or PGPICC, aboard the SeaSpeed.

The vessel is on its way to Mombasa, Kenya, according to cFlow.

Trading firm Global Reality, a regular lifter of Iranian cargoes this year, loaded from Bandar Imam Khomeini a 44,000 mt cargo, comprising 33,000 mt of propane and 11,000 mt butane, aboard the Gas Jasmine from PGPICC, sources said. The VLGC is now in the Gulf of Oman en route to Fang Cheng in southern China.

Caspian Petrochemical Co., another Iranian trading company, is due to lift at Assaluyeh either a 44,000 mt propane or mixed cargo aboard the Gas Courage. Platts cFlow shows the Gas Courage has made regular trips to Indian ports such as Haldia, Vizag and New Mangalore in recent months from Middle Eastern ports.

PGPICC is lifting at Assaluyeh a 44,000 mt propane cargo aboard the VLGC EverRich 8. The vessel last departed from New Mangalore around mid-November.

It is also lifting from Assaluyeh a 5,000 mt parcel aboard the EverRich 6, which, according to cFlow, is en route to Port Qasim in Pakistan.

Other than the Petredec cargo, the December program is not showing any other shipments to Indonesia.

Indonesia’s state-run Pertamina took a 44,000 mt propane cargo for October lifting and one parcel for September lifting after a pause in August, shipping sources said.

Those earlier cargoes, shipped by two of Pertamina’s own VLGCs, are under an FOB contract that commenced in May last year with NIOC for a total 600,000 mt of LPG to be delivered over 2016-2017.

A Pertamina source said the company will soon negotiate its contract renewal with the Iranian side following a delay and aims to conclude the talks by end December, with supplies to start from February through to December 2018. Indonesia is well supplied for January, he added.

Pertamina last month awarded a 2018 term tender to four traders to supply from January four to six 44,000 mt evenly split cargoes/month on a CFR basis.

Pertamina’s discussions will now be with IGCC and not NIOC, the source added. Pertamina has been taking term cargoes from IGCC since earlier this year, according to shipping sources.

PGPICC and IGCC are now the main exporters of Iranian LPG, taking over from NIOC following a restructure of the country’s LPG sector earlier this year by the oil ministry, industry sources said.

Following that, IGCC now handles about 2.4 million mt/year of LPG and PGPICC controls around 2 million mt/year, they said. Kharg Petrochemicals Co. also handles a small volume and occasionally issues export tenders.

Pertamina has also had a term contract with Petredec since 2007 for one to four 44,000 mt cargoes/month, one source said.

Other sources said the contract, which runs until December 31, 2018, supplies up to five cargoes/month.

(Source: Platts)

The post Asian markets look to recovery of Iran’s LPG exports appeared first on Iran News Daily.

As reported, the parties will review volumes as well as price levels for 2018 exports.

Pertamina has had a contract with NIOC since May 2016 for a total 600,000 million tons (mt) of LPG to be delivered over 2016-2017 in 14 cargoes.

The first 44,000 mt evenly split propane/butane parcel was delivered in October 2016.

Pertamina, which has been receiving one or two cargoes a month, last took delivery of a 44,000 mt propane cargo on the VLGC Pertamina Gas 2 from Assaluyeh, shipping sources said.

The post NIOC, Pertamina to discuss renewing LPG contract appeared first on Iran News Daily.