Iran Says Petrochemical Plants Not Affected by Gas Shortage

Petrochemical facilities in Iran are up and running, an official at the National Petrochemical Company said, stressing that the plants have faced no shortage of feedstock despite the suspension of gas supplies from Turkmenistan since last week.

"The National Iranian Gas Company is supplying petrochemical plants nationwide with their  gas needs," Ali Mohammad Bosaqzadeh, deputy for production control at the NPC, was quoted as saying by Shana on Monday.

He, however, did say that some facilities are running below their full output capacity due to a drop in pressure in the national gas distribution network.

Turkmenistan cut gas flow to Iran in an abrupt move a day after the two neighboring countries announced they had reached an agreement to continue gas cooperation for at least five years.

Turkmengaz, the national Turkmen gas company, halted the gas flow due to an arrears row that has lingered almost for a decade between the two sides.

Officials in Iran have said they will draw on the huge inventory of diesel and mazut to supply thermal power plants with feedstock, adding that gas supply to all consumers will be as usual.

Iran consumes some 700 million cubic meters of gas per day. Turkmenistan exported 10-12 mcm/d of gas to Iran, which accounted for less than 2% of the domestic gas demand.