Iran’s floating gas condensate inventory has reduced substantially, owing to exports and higher domestic consumption over the last two years, the oil minister said.
“In 2021 when the 13th government, led by President [Ebrahim] Raisi, took office, we had concerns about the piling gas condensates as 78 million barrels were floating in our ships, but now the massive stockpile has almost reached zero," Javad Owji was also quoted as saying by ISNA.
The National Iranian Oil Company took effective initiatives and raised the export of gas condensates to a record high since May 2019, he added, noting the floating gas condensates were exported and used domestically.
The minister said Iran has sold several cargoes of gas condensates to fellow OPEC member Venezuela and also increased its energy sales despite a US campaign to minimize it.
"Fortunately, our exports of crude oil, gas condensates, natural gas, oil products and petrochemicals have reached a very acceptable figure," Owji said, without giving details.
Iran has been subject to sanctions on its energy sector since 2018, when the US administration withdrew from a nuclear deal with Tehran and reimposed restrictions on the country's economy.
According to data from NIOC, Iran earned close to $40 billion by selling crude and petroleum byproducts in the last fiscal year that ended on March 20, 2023.
The country’s income from exporting petrochemical goods reached $14 billion last year.
Petrochemical Projects
In the current fiscal 2023-24, one petrochemical project on average will be launched across the country per month, the oil minister said.
“With the completion of these projects, the industry’s nominal production capacity will reach 95 million by the end of the year [March 2024],” he added.
According to Owji, about 70 petrochemical complexes with a nominal production capacity of 92 million tons a year are producing more than 550 grades of chemical and polymer products.
On the other hand, the country's current gas production, estimated at 990 million cubic meters per day, is behind schedule, the minister added.
"Based on the country's macro plans ... 1.2 billion cubic meters should have been injected into the national gas grid today but unfortunately, it is not the case due to lack of investment," he said.
Owji noted that Iran's South Pars Gas Field, shared with Qatar, has reached a record production level of 750 million cubic meters per day.
The minister announced that in the last Iranian year (March 2022-23), $12 billion worth of oil, gas and petrochemical projects were launched and this year about $15 billion worth of oil and gas projects will be inaugurated.
These projects have had a direct impact on increasing the production capacity of the country, he added.
Currently, Iran’s daily crude oil production is 3 million barrels and natural gas output is 990 mcm, while the nominal production capacity of petrochemical products is about 95 million tons annually.
Regarding ongoing projects, Owji said several plans are underway, including the development program of Phase 11 of South Pars Gas Field and the first phase of South Azadegan Oilfield, more than 12 petrochemical projects, oil refining projects, including the Isfahan Refinery’s quality improvement plan, the plan to improve the quality of Shiraz Refinery products, launch South Adish Refinery and implement gas supply projects in industries and cities.
“An important point about the projects is that domestic companies will provide more than 80% equipment and goods for them,” he added.
Referring to the high capacity for investment in Iran’s oil and gas industry, Owji said, “We have created about $160 billion of investment opportunities in the upstream and downstream sectors of the oil and gas industry, and we are ready for all domestic and foreign investors to participate in these projects.”
