Steep Decline in Diesel, Mazut Consumption

Steep Decline in Diesel, Mazut ConsumptionSteep Decline in Diesel, Mazut Consumption

Consumption of mazut and diesel fuel in power plants was curbed last year by nearly 8 billion liters due to stable supply of gas to plants nationwide, Iran Power Generation Transmission & Distribution Management Company (Tavanir) said in a report.

Approximately 49 billion cubic meters of natural gas was delivered to power plants last year, a 12.3 billion liter year-on-year increase; besides, Diesel and mazut consumption, which accounted for 9.2 and 10.2 billion liters respectively, were cut by 3 and 5 billion liters compared to the previous year, Mehr News Agency said, according to the report.

The National Iranian Gas Company (NIGC) announced earlier that its gas supply to power plants had a nearly 15-bcm year-on-year rise. NIGC said by increasing gas delivery to power plants by almost 30 percent, approximately the same volume of feedstock was saved from burning which reduced both pollution and costs.

Gas output rose by 100 million cubic meters per day last year, following the launch of several South Pars gas field phases, namely Phase 12 – touted as the biggest Iranian gas project in history - with the capacity to produce 75 mcm of natural gas per day.

According to published reports, Phase 12 output alone has reached a record high of 80 mcm/d in the present year.

Iran holds the world’s second biggest natural gas reserves after Russia. It holds an estimated 17 percent of the world's proven natural gas reserves, with South Pars gas field in the Persian Gulf holding roughly 40 percent of the country's total gas reserves.

Plans call for replacing mazut and diesel fuel with natural gas as feedstock in power plants as part of measures to reduce pollution.

The government has instructed not only power plants but also refineries to use gas instead of more polluting feedstock such as mazut due to abundance of gas resources in Iran and the rise in gas extraction from SP phases.