The National Iranian Oil Company's gasoline exports to neighboring states in the first four months of the current fiscal year (March 21-July 22) dipped sharply compared with the corresponding period of the previous year, a member of Iran-Iraq Chamber of Commerce’s board of directors said.
“The company sold $700 million worth of gasoline to Iraqi Kurdistan, Afghanistan, Pakistan, Armenia and some African states between March 21 and July 22 in 2020. Sales figures are predicted to have dropped by at least 50% over the same period in 2021, as domestic consumption is on the rise and leaves no room for exports,” Hamid Hosseini was also quoted as saying by ILNA.
Demand for gasoline has soared by 40% during the period, he added.
“Daily gasoline consumption in the 133-day period has reached 80 million liters, but the figure was barely 50 ml/d last year.”
Giving a breakdown, Hosseini noted that daily consumption in March-April was about 85 million liters, up 38 million liters compared with the same period of 2019 while daily demand in June-July surpassed 90 million liters, showing a rise of 30% year-on-year.
Referring to other factors contributing to the export downtrend, Hosseini said some refineries are being overhauled and this has affected output adversely.
Gasoline export revenue was $490 million in 2019, he said.
The Oil Ministry started offering oil products, namely gasoline and diesel, on the Iran Energy Exchange in 2019 after the initiative to sell crude oil on the bourse flopped.
Each liter of gasoline is sold at 6 cents in Iran and the same amount of fuel costs 100 cents in Afghanistan.
With regard to diesel exports, Hosseini said NIOC was unable to fulfill its commitment last year as natural gas consumption soared in the household sector and thermal power plant had to consume a substantial amount of diesel.
“The same scenario is likely to happen this year, so filling power plants’ diesel inventories should have priority over exports,” he added.
LPG Exports
ISNA quoted trade sources as saying that Iran's liquefied petroleum gas exports are set to stay near two-year peaks of around 500,000 tons in July and August, meeting China's voracious appetite for cheaper petrochemical feedstock, as the number of its propane dehydrogenation plants has increased.
The high volumes, which some sources estimate could exceed 500,000 tons, are expected to last through the end of 2021, driven by the rise in Iran's LPG production and demand, sources said.
A Chinese source said more Iranian LPG was shipped into China this year, which could be due to the grade's competitive price.
According to data intelligence company Kpler, China was the largest buyer of Iranian LPG in June at 464,000 tons, or 95% of its total exports, with small amounts shipped to Pakistan and Bangladesh.
A trade source said the three countries are the only lifters of Iranian LPG.
Iran's LPG exports come from mainly two sectors: petrochemical plants and gas refineries.
LPG from petrochemical plants is produced by Bandar Imam Petrochemical Company in Khuzestan Province, which produces 1 million tons per year of LPG; Petrochemical Commercial Company in Bushehr Province, which produces 1.5 million tons per year, and Kharg Petrochemical Company, which produces 200,000 tons per year.
Gas refineries, mainly located in South Pars off the Persian Gulf, have export quantities of about 3 million tons.
Production from gas refineries can be much higher if US sanctions, which have limited the number of vessels used for export, are eased, the source added.
Before the US imposed sanctions, Iran's monthly LPG exports peaked at 568,000 tons in August 2018, driving shipments in that year to 5.2 million tons, shipping and trade data showed, the highest since the previous western sanctions on its nuclear program were lifted in January 2016.
In one month, peak export volumes can reach 13 Very Large Gas Carriers, sources said.
China imported 4.94 million tons of Iranian LPG in 2019, 3.85 million tons in 2020 and 1.965 million tons over January to May 2021, industry data showed. Sources said Iranian exports to China are via ship-to-ship operations and not reflected in official data.
