Iran is self-sufficient in manufacturing turbines used in petrochemical plants, oil and gas industries and power stations, managing director of Iranian Gas Engineering and Development Company said.
“Domestic firms have transferred the much-needed knowhow to produce different turbines from Europe and the advanced technology has been indigenized,” Reza Noshadi was also quoted as saying by ILNA.
Locally-make turbines are being used in the power plants of Iraq, Syria and Oman, and negotiations are underway to sell them in Latin American countries, namely Cuba and Venezuela, he added.
Referring to the turbine market in Arab states, the official noted that although the UAE, Qatar, Kuwait and Saudi Arabia need the hi-tech rotary mechanical device, the US does not allow them to sign contracts with Iranian firms and their market is dominated by European companies.
“No matter how reasonable our prices, Arabs will not buy Iranian turbines as they have been prohibited from trading with Iran. Competition in the market is not based on commercial principles, as they have been replaced by political ties,” he added.
According to Noshadi, domestically-made oil and gas equipment and parts comply with European standards and have potential customers in the markets of Central Asia, Latin America and Russia, which are not under the US dominance, hence long-term plans should be drawn up to penetrate these markets.
“A contract has been signed between Iran and Russia, based on which 40 turbines manufactured domestically will be exported to Russia,” he said.
The National Iranian Gas Company, a subsidiary of the National Iranian Oil Company, has invested $4 billion to fast track the indigenization of vital equipment in collaboration with domestic manufacturers and engineers over the past two decades.
The indigenized equipment include turbines, pumps, anti-corrosion steel pipes, valves, storage tanks, boilers and compressors.
85% Self-Sufficiency
According to Majid Mohammadpour, the head of the Association of Iranian Petroleum Industries Equipment Manufacturers, Iran is 85% self-sufficient in manufacturing parts and equipment needed by the oil and gas industries.
“Currently, 820 companies are members of the association, which meet 85% of the needs of the petroleum industry,” he added.
Iran achieved self-sufficiency in the field of equipment manufacturing after domestic companies acquired the knowhow.
Mohammadpour said all stages of the design, engineering, construction and installation are undertaken by local experts and engineers, which have been achieved through the efforts of the research and development departments of Iranian firms.
In recent years, 12,000 items have been indigenized in the oil-rich regions of southern Iran, some of which are strategic items made in collaboration with knowledge-based companies.
The Association of Iranian Petroleum Equipment Manufacturers is a private and non-profit organization founded in 2000.
Most of the Iran’s petroleum equipment are now designed, engineered and manufactured locally. These include gas and steam turbines, process pumps, air and gas compressors, industrial valves, pressure vessels, heat exchangers, tanks, air coolers, towers, boilers, pipes, fittings, catalysts, drilling bits, wellhead equipment, drilling rig, control and dispatching systems, instruments, switchgears, high voltage cables and accessories.
Currently, Iran ranks first in the Middle East in the production of oil equipment, despite the US sanctions.
In May 2018, the US withdrew from the Joint Comprehensive Plan of Action (the formal name of Iran nuclear deal) signed between Iran and P5+1 in July 2015, and reimposed unilateral sanctions on Iran.
Still in place, the draconian sanctions have mainly targeted Iranian oil and banking sectors. However, despite all the difficulties caused by the sanctions, the oil industry has progressed in the past four years with the help of local experts.
Several companies in the field have endeavored for years to reduce dependence on foreign countries.
Knowledge-Based Companies
The National Iranian Gas Company has planned to indigenize 29 key equipment in the gas industry by 2024 and signed several contracts worth $23 million with domestic knowledge-based companies.
Within three years, the country's gas industry will stop importing these strategic items from European countries such as France and Germany.
While the locally-made items will have the same quality as their foreign counterparts and accord with national and international standards, their production cost will be less than half that of foreign counterparts.
NIGC has already indigenized several parts and equipment used in the gas industry and reduced the import of equipment worth $300 million per year.
The National Iranian Drilling Company is also collaborating with domestic manufacturers to indigenize equipment and parts used in drilling projects. Its goal is to empower domestic industries and boost the quality of equipment manufactured inside the country.
NIDC's research, technology and engineering departments have indigenized 5,000 equipment in the past two decades, most of which are used in offshore and onshore rigs.
Several refineries have also been making efforts to manufacture other key parts.
