The operation to supply feedstock in the form of compressed natural gas to Chabahar Power Plant in Sistan-Baluchestan Province has resumed, the deputy for gas distribution at the National Iranian Gas Company said.
"The venture, which was expected to go on stream in May, came to a standstill due to financial disagreements between the private domestic contractor and its foreign investor," Saeed Momeni was also quoted as saying by Shana on Saturday.
According to the official, the problem has been resolved and the project is on track, stressing that plans are in place to compensate for the delay to complete the initiative on time.
"The much-needed equipment has been purchased and transferred to the site," he said, adding that as long as the project is not fully developed, the plant will be supplied with liquid fuel.
Momeni noted that as per the build-operate-transfer contract between NIGC and the private sector, the first phase of the plan was aimed at transferring one million cubic meters of natural gas.
"It was expected to come on stream by May, but has been postponed due to the contractor's procrastination," he said.
Momeni had earlier said the gas-fired Chabahar Power Plant is the first power station in Iran to receive CNG for electricity production.
Made by compressing natural gas, CNG is primarily composed of methane. Unlike natural gas, which is typically transported via pipelines, CNG is carried via ships or on land using special trucks.
The power plant currently receives part of its feedstock from a 14-inch pipeline stretching over 20 kilometers from the port of Chabahar off the Sea of Oman.
"Using CNG in power stations stabilizes the supply of feedstock to power plants and helps rein back considerable costs for pipeline design and construction," the official said.
"In this new method of feedstock supply, it is imperative to build CNG storage tanks at or near the power plant."
Using CNG for electricity generation is in line with plans to replace polluting feedstock, such as mazut and diesel, with cleaner and more eco-friendly fuels at power stations and refineries.
Around 80% of thermal power plants in Iran reportedly burn natural gas for electricity generation.
Asked about Zahedan Power Plant, Momeni noted that the station comprises eight units, of which seven are provided with natural gas and operations are underway to supply the last one with the eco-friendly feedstock.
Sistan-Baluchestan power plants have been supplied with gas since March 2017 when an extension of Iran Gas Trunkline 7 started to pump natural gas from Asalouyeh in Bushehr Province to Iranshahr in Sistan-Baluchestan Province.