Energy
0

LPG Exports at 80,000 Tons

LPG Exports at 80,000 TonsLPG Exports at 80,000 Tons

Iran exported 80,000 tons of liquefied petroleum gas in the first two months of the current Iranian year (started March 20), director of imports and exports at the National Iranian Oil Products Distribution Company said.

"Iran's total LPG output has been exported this year and nothing has been flared," Amir Vakilzadeh was also quoted as saying by Shana on Sunday.

Vakilzadeh added that LPG exports are carried out via land routes to neighboring countries and some shipments have also been made to North Africa via tankers. He did not give a breakdown.

LPG is a mixture of propane and butane, two flammable but nontoxic gases. It is mostly used for heating and cooking as an alternative to piped natural gas at homes. It is also a significantly cleaner alternative fuel for vehicles.

The lifting of most western sanctions against Iran in January has allowed the country to reach out to markets that were blocked to it when sanctions were in place.

Sanctions significantly reduced Iran's export of crude oil and petroleum products.

Besides the dip in production, many international vessels refused to carry Iran's oil and its byproducts in fear of violating the restrictions that the US and EU had placed on doing business with the Persian Gulf nation.

But the country is on the path to expand its LPG market share.

Iranian officials say 17 tankers have been added to Iran's fleet to fill the big gap between the low number of carriers and the large volumes of LPG for exports.

Iran signed a deal last month with Pertamina, Indonesia's state-owned oil and gas company, to export 80,000 tons of LPG to the country in two shipments under a new contract that could increase to 500,000 tons next year.

According to reports, Pertamina will seek an evenly split cargo of propane and butane from Iran.

Financialtribune.com