Iran’s defense and oil ministries signed a contract on Monday for transferring natural gas via pipeline from the city of Iranshahr to Chabahar in Sistan-Baluchestan Province.
According to Shana, Oil Minister Bijan Namdar Zanganeh and Iran’s Defense Minister Amir Hatami were present at the signing ceremony.
The contract is aimed at supplying gas to industrial units in the south of the province, including petrochemical plants, steel units and power stations in Chabahar and Konarak, and providing gas to the area's residents.
In addition, gas export to the neighboring country Oman depends on launching the Iranshahr-Chabahar Pipeline, which will be implemented by an unnamed subsidiary of the Defense Ministry.
Hassan Montazer-Torbati, managing director of Iran Gas Engineering and Development Company, said laying the 290-kilometer gas pipeline needs an investment of €245 million ($300 million) and will be completed by the end of the next fiscal year (March 2020).
According to Montazer-Torbati, the pipeline is divided into four sections consisting of Iranshahr, Mokran, Mokran-Chabahar Power Plant and Mokran-Konarak Power Plant, in which pipelines with a variety of diameters (56, 42, 20 and 16 inches) will be used.
The official noted that while the initial 201 kilometers of the pipeline are due to be financed by the National Iranian Gas Company, the contractor will provide the investment needed to complete the remaining parts.
Giving a breakdown of the costs of the project, he said that over $122 million are allocated for laying pipeline, $43 million for the supply of equipment, $2.6 million for land acquisition and $2.1 million for additional costs.
The project was started more than a year ago by the private sector, but the pipeline has made only 17% progress.
Based on the agreement, following the completion of the project, the contractor is required to inject gas into the pipeline, which supplies natural gas to the petrochemical complex in Chabahar, and after clearing NIGC’s debt to the contractor, gas supply will be handed over to the Iranian Gas Transmission Company.
About power plants in Chabahar and Konarak, Montazer-Torbati stressed that the two power plants currently use 700 million liters of liquefied fuel per annum, which will be changed to natural gas once the gas transfer plan is complete to help curb the emission of liquefied fuels and preserve the environment.
--- Pricing Policy
According to Oil Minister Bijan Namdar Zanganeh, who was talking on the sidelines of the signing ceremony, the National Iranian Oil Company has not offered any special discounts to attract more customers.
"Sometimes we need to adopt short-term pricing policies to maintain our market share," Zanganeh said, rejecting speculations that Iran is selling crude to Indian oil companies at low prices.
"NIOC will take whatever actions possible to minimize the effect of the US president's hostile policies against the country," he said.
The minister added that Iran's recent decline in oil exports is temporary and currently the country's export of oil and condensates amounts to 2.5 million barrels per day.
Asked about assigning Denmark's Maersk Group to develop the second phase of South Pars oil layers, Zanganeh said, "Because Total has purchased the Copenhagen-based oil and gas business, we have no plans to conclude an agreement with the French energy major to complete the venture."
