Tehran, Kiev to Bolster Energy Ties

Tehran, Kiev to Bolster Energy TiesTehran, Kiev to Bolster Energy Ties

Iran and Ukraine can expand their cooperation not only in renovating aging power plants but also in implementing power grid voltage enhancement projects, Iran's energy minister said.

After holding talks with Ukrainian Vice Prime Minister Zubko Hennadii and Ukraine's Minister of Energy and Coal Industry Vladimir Demchishin, Hamid Chitchian added that increasing Iran's electricity network voltage from 400 to 765 kilovolts, constructing power plant steam units and repairing dilapidated power plants top the list of priorities in bilateral collaboration, ISNA reported on Tuesday.

According to the energy minister, there are good opportunities for Ukrainian enterprises to manufacture power transformers in cooperation with Iranian experts and purchase the transformers from Iran with a high quality and at a reasonable price.

"Iran's electricity firms are ready to meet Ukrainian power plants' needs in terms of equipment and state-of-the-art knowhow," he said.

The energy minister believes that the two sides can focus their collaboration on different sectors, the most important of which are financing joint venture projects, converting gas power plants to combined-cycle ones, modernizing and constructing new power plants, as well as enhancing power grid voltage.

Chitchian invited Demchishin to visit the Iranian group MAPNA and get familiar with its abilities in producing huge gas turbines and single crystal turbine blades.

"MAPNA plans to acquire the knowhow to manufacture Siemens gas turbines in Iran, so Ukraine can count on MAPNA to provide it with its cutting-edge power plant equipment," he said.

Demchishin hoped that the ongoing negotiations will result in signing contracts and developing cooperation between the two sides.

Noting that energy ties were cut between the two sides12 years ago, he said, "We are here to start again and compensate for our long absence."

Attaching great importance to importing engineering services from Iran, Zubko called for expansion of economic relations in a wide range of sectors, including oil, gas and energy infrastructures.

  Oil Trade Negotiations

Kiev is discussing the possibility of importing oil from Tehran and refining oil in Ukrainian plants.

“We are interested in diversification of oil products’ supply to Ukraine. In addition, Iran shows interest in diversifying the export of its oil and oil products,” said Zubko on "112 Ukraine" TV.

“Therefore, the possibility of refining Iranian oil in Ukraine, storing crude oil in the country and then diversification of supplies to the European Union is also on the agenda,” he added.

Ukraine's deputy prime minister noted that although the supply of Iranian oil to the EU is a strategic issue, both sides are interested in it. According to Bijan Namdar Zanganeh, the Iranian oil minister, $180 billion worth of oil projects are ready to be funded and Ukrainian enterprises should take advantage of the opportunity.

Stressing on expanding bilateral ties between Tehran and Kiev in producing state-of-the-art oil equipment, he noted that the two states can also embark on implementing joint ventures in other sectors.

Asked about the Oil Ministry's plan to attract foreign investment, the oil minister said, "Several schemes have been devised, some of which pertain to the petrochemical sector. For instance, Iran plans to invest $50 billion in the petrochemical industry and a part of the investment must be made by foreign companies."

Zanganeh believes that as long as Ukrainian enterprises do not embark on financing oil projects through their banking system, their range of operations will be limited.