News ID: 111932
Published: 0740 GMT February 17, 2015

Oil Ministry signs six contracts for exporting electricity

Oil Ministry signs six contracts for exporting electricity

The Oil Ministry has signed six agreements with the private sector on increasing gas delivery to power plants to boost electricity generation and exports.

Addressing the Majlis on Tuesday, Oil Minister Bijan Namdar Zanganeh said steps have also been taken to achieve the targets set by article 13 of the resistance economy policies notified by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei and diversify gas export modes, Shana reported.

"Gas and electricity exports are both lucrative businesses on their own. However, if certain issues are overlooked in the process, they may become rivals, gradually destroying one another and inflicting losses on the economy."

He noted Iran's neighboring states are the main electricity export destinations, adding even if gas is sold at 13 cents per cubic meter to petrochemical plants, it is still is less than half of the price of exporting each cubic meter of gas.

Zanganeh put the price of Iran's gas exports at 36 cents per cubic meter of which a major portion will be used for electricity generation.

"Currently, the Majlis has endorsed that the price of crude oil supplied to refineries will be only six percent cheaper than the export rate."

The Oil Ministry has announced its readiness to supply gas for electricity generation and exports.

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