2 September 2018 - 15:40
  • News Code: 284426
Condensate Exports Down as Domestic Use Up

TEHRAN (Shana) -- Since taking office in 2013, the administration of President Hassan Rouhani has focused on putting an end on selling raw materials.

TEHRAN (Shana) -- Since taking office in 2013, the administration of President Hassan Rouhani has focused on putting an end on selling raw materials. This issue was followed up on seriously by Minister of Petroleum Bijan Zangeneh although international sanctions against Iran were still in place. The Bandar Abbas Gas Condensate Refinery, known as the Persian Gulf Star, is known as the symbol of initiative to end raw material selling in the fourth decade of the establishment of the Islamic Republic. The treatment facility has undergone development thanks to Iran's historic nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), with six world powers to help Iran join exporters of refined petroleum products.

Even US unilateral sanctions on Iran's petroleum industry could no longer affect Iran's gas condensate exports because condensate is being used domestically now.

When the JCPOA entered into force in January 2016, Iran had 75 million barrels of condensate parked on water; imagine 37 very large crude carriers (VLCC). Now Iran is feeling comfortable even though US President Donald Trump has decided to restore sanctions on Iran.

Construction of the Bandar Abbas condensate refinery dates back to 2006. It was initially planned to come online in four years to make Iran self-sufficient in gasoline production, but this objective was not realized until 2013. The project was prioritized after the Rouhani administration took office. The first phase of the facility became operational in May 2017 and the second phase was put into operation two months later. Euro-4 gasoline production from the two phases currently stands at 24 ml/d.

Iran is currently producing 650,000 b/d of condensate, half of which is used domestically. That means Iran no longer depends on foreign gasoline imports, saving the nation billions of dollars.

Ali-Reza Sadeq-Abadi, CEO of National Iranian Oil Refining and Distribution Company (NIORDC), said the condensate refinery had supplied 3.7 billion liters of gasoline, 1.7 billion liters of gasoil, 500 million liters of liquefied petroleum gas and 9 billion liters of other oil products since becoming operational.

He added that the operation of this refinery saved Iran $5.4 billion in hard currency.

"The Persian Gulf Star refinery is delivering 24 ml/d of Euro-5 gasoline and 6 ml/d of middle distillate products," said Sadeq-Abadi, adding that the oil products were valued at $15 million a day.

Facilitated Condensate Supply

Gas condensate consumption in Iran is not supposed to be limited to the Persian Gulf Star refinery. Under Iran's 6th Five-Year Economic Development Plan, Iran's gas condensate production, which would reach 1 mb/d, will be consumed domestically. After the Persian Gulf Star refinery, Borzouyeh Petrochemical Plant is the largest consumer of gas condensate in Iran.

Saeed Khoshroo, director of international affairs at National Iranian Oil Company (NIOC), said loading gas condensate started at Shahid Rajaei Port, destined for domestic consumption, recently.

"In order to support domestic industries and prevent selling raw materials, NIOC has in addition to supplying gas condensate from the Ilam and Khangiran fields to resume South Pars condensate supply from Bandar Abbas and then from Assaluyeh once infrastructure has been completed," he added.

"Over the past month, 40,000 tonnes of South Pars gas condensate has been supplied from Bandar Abbas," he said.

Condensate Used Domestically

Amid Washington's threat of renewed sanctions on Iran, speculation is rife that Iran's gas condensate exports have dropped. But the fact of matter is that NIOC had long ago decided to provide domestic refiners with condensate.

"Gas condensate supply may increase, in case market demand grows. Furthermore, based on arrangements, the delivery of gas condensate to buyers is timed to ensure production units about feedstock supply for several months," said Khoshroo.

Noting that NIOC has taken action to ensure sustained condensate supply to small domestic refiners in recent years through the Iran Energy Exchange, he added: "In light of increased domestic supply and the impossibility of its supply from Ilam and Khangiran, NIOC has provided the necessary facilities for onshore loading of South Pars gas condensate."

Roya Khaleqi

Courtesy of Iran Petroleum 

News Code 284426

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