Rise in Fuel Reserves

Rise in Fuel Reserves Rise in Fuel Reserves

Following the launch of several phases of the South Pars Gas Field last year and a surge in natural gas output, shortage of feedstock for industries and power plants during the winter is no longer a concern, said managing director of the National Iranian Oil Refining and Distribution Company.

"Petrochemical reserves to be used in industries and power plants as feedstock have doubled compared with the same point in time last year," Mehr News Agency quoted Nasser Sajjadi as saying.

That is to say that more than one billion liters of mazut and diesel have been stored vis-à-vis the same period of last year.

"The rates of diesel, mazut, kerosene and liquefied natural gas consumption have seen a negative growth since the beginning of the current Iranian year (March 21), and we are now facing surplus output," he said.

As a result of the increase in gas output, the strategic product has replaced mazut and diesel as feedstock in some refineries and power plants, consequently making room for export of the surplus of these products.

Iran plans to raise its petrochemical exports, diesel in particular, to neighboring states, and Pakistan, Tajikistan, Armenia, Afghanistan, Iraq and the Iraq's Kurdistan Region are Iran's major export destinations.

In addition, the government has instructed power plants and refineries to use gas instead of more polluting feedstock such as mazut due to the abundance of gas resources in Iran and the rise in SP gas extraction.