1.2b Liters of Diesel Exported to Neighboring Countries

1.2b Liters of Diesel Exported to Neighboring Countries1.2b Liters of Diesel Exported to Neighboring Countries

Iran has exported 1.25 billion liters of diesel to Afghanistan, Iraq, Pakistan and Armenia through its land borders since the beginning of the current Iranian year (ending March 19, 2016), managing director of the National Iranian Oil Refining and Distribution Company said on Monday.

"The National Iranian Oil Company's International Affairs Department has also been actively involved in exporting diesel to Southeast Asia," Seyyed Nasser Sajjadi also told IRNA.

According to the official, not long ago, Iran had to import a substantial amount of diesel to meet the needs of its power plants and transportation sector. However, as of last year when the South Pars Gas Field's new phases became operational, not only did the import of oil byproduct come to an end, but the country also started to export the product.

Pointing to power plants' heavy reliance on mazut and diesel prior to the increase in gas delivery, Sajjadi added that a substantial amount of money was spent on importing the product, which contributed to air pollution.

As the new phases of South Pars went on stream, Iran's gas supply increased by 100 million cubic meters, which reduced diesel consumption significantly.

The National Iranian Gas Company recently announced it will raise gas delivery to power plants by 7 billion cubic meters, leading to a decline of 7 billion liters in the consumption of liquid fuels, including diesel and mazut.

Reduction in diesel use in power plants has paved the way for its export. In fact, plans have been made by NIOC to ramp up diesel export further, as more South Pars phases become operational.

Afghanistan's Minister of Trade and Industry Homayoun Rasa has recently expressed its country's readiness to increase diesel import by 1 million tons.

According to Esmail Hasham Firouz, the head of international affairs at NIORDC, Iran is capable of exporting up to 3 million liters of diesel to Afghanistan per day if it has the right strategy to prevail over potential competitors.

According to the official, oil products such as diesel and liquefied natural gas are exported to Georgia and Armenia on an irregular basis. Moreover, Iran will "turn into a key player in exporting diesel to regional markets" as soon as all South Pars development projects come on stream. The present surplus diesel production capacity stands at 25 million liters per day.