News ID: 290
Published: 0801 GMT August 13, 2014

Zanganeh elaborates on Oil Ministry plans

Zanganeh elaborates on Oil Ministry plans

Oil Minister Bijan Namdar Zanganeh elaborated on the ministry's plans to reduce fuel consumption, improve gas supply, build mini LNG units and gather associated gases.

Clarifying the government's policies for moving out of recession at a meeting, Zanganeh said Western sanctions have targeted oil industry and exports, IRNA reported.

“To improve the current economic situation, the Oil Ministry has focused efforts on increasing gas production,” he said.

The oil minister said in case gas extraction grows, the country will be able to export a large amount of liquid fuel.

"In 2013, due to gas shortage, $18 billion worth of liquid fuel were consumed by power plants. Also, Sistan-Baluchestan province's power plants use $2 billion worth of liquid gas as feedstock per annum. This is while the government can lay a gas pipeline in the province with an investment of only $1.5 billion," he said.

Referring to last year's budget, he said if the government were to supply gas to three million deprived households, it will be able to save four billion liters of kerosene and two million tons of LPG.

He added that the government is committed to allocate $2 billion for reducing gas consumption and $10 billion for expanding rail transportation.

Zanganeh said the ministry will issue an invitation for establishing mini LNGs by next month.

“A plan is also underway to supply CNG to 600,000 rural households,” he said.

"More than 20 million cubic meters of associated gases are consumed daily."

He noted that the Oil Ministry plans to construct eight 60,000-barrel refineries in Siraf Port, Bushehr province, to stop gas condensate exports.

Zanganeh put Iran's refining capacity at 1.8 million bpd, which is to grow by 1.2 million bpd with the launch of new refineries.

"The ministry also intends to increase oil output by 700,000 barrels," he said.

   
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