Construction of a loading pier for LPG export, at Tombak Port, approximately 50 kilometers north of the port of Asalouyeh in Bushehr Province, is almost complete, managing director of Pars Oil and Gas Company (POGC) said.
"Work started in 2014 and is due to become operational in February with the help of domestic contractors," Mohammad Meshkinfam was quoted as saying by Oil Ministry news website.
The facility includes two LPG loading arms each of which can berth ships with a capacity of 50,000 tons. It is equipped with a modern arm to load sulfur for vessels with capacities ranging from five to 50,000 tons.
The POGC chief said two sulfur warehouses and a refining unit to help process natural gas from the South Pars phases 22 to 24 are also under construction. The official said Tombak, with a depth of 34 meters, is the deepest port in the country and the Persian Gulf region.
LPG is made up of butane, propane or a mixture of both gases. It is second-best eco-friendly fuel after natural gas and delivered via trunk lines.
Compared to natural gas, diesel and mazut, LPG has more than double the energy content at 93 megajoule per cubic meters, so it is much more efficient.
Referring to LPG output, he noted that Iran produces at least 12 million tons of LPG per year of which 60% is exported. The United States economic siege “is not a major threat” to Iran's share in the global LPG market, he noted, but did add that lifting of the sanctions would help expand export levels.
Oil Byproducts
While US sanctions on the key oil industry have slashed crude exports (to less than 200,000 barrels per day), Iranian oil byproduct sales are strong at nearly $500 million a month, shipping data and Reuters calculations show.
Sanctions have not gravely affected Iran’s exports of oil derivatives, primarily LPG used as cooking gas and petrochemical feed. "LPG is sold to private companies in Asia, including China, Pakistan, Iraq and Turkey.”
According to Hassan Montazer-Torbati, head of the National Iranian Gas Company, LPG shipments, the bulk of which goes to the Far East, are delivered regularly.
Despite rumors in the media last week that Iran had stopped LPG export due to the lack of LPG tankers, the NIGC official said LPG shipping “was never disrupted.” However, the Oil Ministry in Tehran said LPG export in September declined to 300,000 tons, after hitting 500,000 tons in August.
Shipping sources have confirmed that some gas cargos were destined for Thailand. According to Global S&P Platts reports, Iranian exports are helping fill shortfalls in spot supply from the Middle East, as major producers Saudi Arabia, Qatar and Kuwait are exporting less spot cargoes and focus on fulfilling term contracts and meeting rising domestic petrochemical demand.
