News ID: 264889
Published: 0337 GMT January 26, 2020

Iran saves $1b by replacing diesel fuel with gas in Kish Power Plant

Iran saves $1b by replacing diesel fuel with gas in Kish Power Plant

By replacing diesel with gas in the Kish Power Plant, the country has saved an equivalent of $1 billion worth of diesel, said the head of the Iranian Offshore Oil Company’s Kish District.

Shahsavar Arghash said one of the major policies of Iranian Offshore Oil Company (IOOC) is to use the capacity of Iranian domestic and oil industry equipment manufacturers, reported Fars News Agency.

He said the project to replace diesel with gas in the power plant began back in 2006. The gas, which was previously flared, was supplied from oil activities on Siri Island.

The official further said that so far the project had saved 15 million barrels of diesel.

Gas compressors in Kish Island can deliver up to 25 million cubic feet of gas.

Alireza Sadeqabadi, who heads the National Iranian Oil Refining and Distribution Company (NIORDC), said in September that Iran’s current production of gasoline, around 115 million liters a day, is enough to pump more than 500,000 tons of the fuel for monthly exports.

He said, however, that NIORDC is ready to increase the export capacity to three million tons a month to generate around 1.5 billion in revenues for the government.

The calculations provided by the official are based on figures obtained from sell-offs of several cargoes of gasoline at Iran Energy Exchange (IRENEX).

Exports of gasoline and other oil products started in late August 2019 when authorities said there are growing demands from neighboring countries.

The growing sale of gasoline comes less than a decade after Iran decided to launch new production facilities or reprogram current refineries to cut imports of the fuel.

   
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