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Stage Set for Huge Curbs on Mazut Production

Stage Set for Huge Curbs on Mazut ProductionStage Set for Huge Curbs on Mazut Production

The National Petrochemical Company is to reduce mazut production and increase the quality of petrochemical products.  This is in line with the 'economy of resistance', a measure proposed by the Supreme Leader Seyyed Ali Khamenei to help counter the sanctions, promote domestic growth and reduce consumption. The US and its allies imposed an array of sanctions on Iran to curb the country's nuclear program. But Iran insists that its program is for peaceful purposes. Iran and P5+1 are negotiating to reach an agreement.

Mazut production is expected to be brought down to less than 10 percent in all refineries by 2025, said deputy managing director of National Iranian Oil Refining and Distribution Company (NIORDC), Shana reported.

Implementation of petrochemical projects is expected to speed up with recent changes to the management structure of refineries," Shahrokh Khosravani said, and complained about the mismanagement that stalled progress on projects in recent years. Funding for these projects needs to be obtained through a combination of the company's internal financing, external resources, the National Development Fund of Iran (NDFI), and domestic loans.

To help curb air pollution, power stations and industries have been instructed to use gas instead of mazut and diesel in the coming winter. Normally power stations consume less gas, and more mazut and diesel in winter, allowing it to be supplied for household consumption when demand rises as the mercury falls.

Mazut and fuel oil will be gradually replaced by natural gas as the main fuel for power plants over the next year, managing director of NIORDC Abbas Kazemi said in October.

 

Financialtribune.com