23 August 2022 - 11:43
  • News Code: 460964
Iran Eyes $400m/y Profit in Kish Gas Project

TEHRAN (Shana) – The CEO of the National Iranian Oil Company (NIOC) said an annual $400 million of hard currency earning will be one of the benefits of developing a gas transmission project to Kish Island.

During a virtual ceremony to officially launch a gas transmission project in Kish Island on Monday, Mohsen Khojastehmehr said that the project would also free up to 7,000 tons of liquefied petroleum gas (LPG) for the country to take advantage of.

The CEO of the National Iranian Oil Company announced the annual hard currency benefits of the project at $400 million, and: The hard currency earnings and investment return of this project is tantamount to an export income for the country.”

In describing the benefits of this project, referring to its environmental aspects, he said: “Gas supply to two power plants on Kish Island, business prosperity, social welfare and important indicators of social responsibility are among the achievements of this important national project.”

The NIOC CEO further said: “This project can have export achievements for the country by saving about one million liters of gasoil per day and curb the non-optimal use of about 7,000 tons of LPG per year in Kish Island. Moreover, production of sweet water and power will also increase thanks to implementation of the project.”

Khojastehmehr announced the investment cost of this project at $350 million, and said: “The daily transmission capacity of the gas transmission project to Kish Island is currently 28 million cubic meters, which will be used at the beginning of the route according to the needs of the island.”

Referring to the gas supply to the entire Kish Island with the plans of the National Iranian Gas Company (NIGC), he added: “By exploiting this plan and accessing its benefits and achievements, the long-standing wish of the people of Kish Island and economic activists and industrialists to use clean fuel has been fulfilled.”

The official went on to add that the return on investment of the project takes a year besides preventing fuel smuggling in the island.

The plan to transmit gas to power plants on Kish Island using the infrastructure of the phase one development plan of Kish field, began in January 2018 under the responsibility of the employer, Pars Oil and Gas Company, on behalf of the National Iranian Oil Company, with the construction of gas transmission pipelines and related stations as well as a string of fiber optic cables with a total length of 127 kilometers.

News Code 460964

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