News ID: 151136
Published: 0700 GMT May 10, 2016

Annual LPG export capacity to reach 5m tons

Annual LPG export capacity to reach 5m tons

Annual liquefied petroleum gas export capacity will reach five million tons once the new phases in South Pars Gas Field become operational, said the head of Iranian Gas Commercial Company (IGCC).

Mohammad Ali Barati further pointed out that Iran's LPG production has experienced a 70-percent growth from 2010 till 2016, reported Shana.

He added that South Pars Gas Complex (SPGC) is producing and exporting 3,000 tons of LPG and with the start up of Persian Gulf Star Refinery, 700,000 tons of LPG will be added to the current volume.

Referring to the Oil Ministry's plan to improve the quality of LPG, he noted that Iran aims to increase LPG export not only to its traditional customers in the Middle East but also to other parts of the world.

Also, National Iranian Oil Company's Deputy Director for Marketing and Crude Oil Operation Safar-Ali Karamati said Iran plans to double its LPG production in the post-sanctions era.

He underlined that Iran is one of the biggest and most reliable suppliers of LPG, bitumen and base oils, adding that Asia accounts for a significant part of Iran's export market for these commodities.

He said Iran never lost its LPG market share even under the US-led sanctions, but of course the removal of sanctions had a major and positive impact on the countries presence in international market.

The official said however that the introduction of shale oil and gas by the US to global market has negatively affected the LPG market for traditional suppliers.

Keramati says about 20 very large crude carriers (VLCC) are to ply international waters by 2017 which is very good news for LPG and bitumen traders.

Iran currently produces eight million tons of LPG annually of which three million tons come from natural gas, 2.5 million tons from petrochemical plants and the rest from refineries, he added.

Iran is developing enormous infrastructural projects in Asaluyeh and Bandar Abbas that will dramatically boost export capacities, Keramati said.

He added that with the launching of South Pars phases, the output of LPG will almost double.

He called for overseas investment in the construction of a major oil plant in Iran that will make the country one of the world's biggest suppliers of finished product.

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