Page 46 - IRANRptNov21

Iran ‘intent on settling gas debts to Turkmenistan as soon as possible’
Iran’s petrochemical output moves up 8% y/y in 1H of Persian year
Iran eyes $145bn in oil industry FDI with China’s help
Iranian Oil Minister Javad Oji has said Iran is determined to settle its natural gas dues to Turkmenistan as soon as possible, Iranian state energy news agency Shana has reported. Oji’s remarks were made after a meeting with a Turkmen delegation headed by Foreign Minister Rashid Muradov on October 26.
According to Oji, Iran has two long-term (25-year) deals with Turkmenistan that saw Iran importing 40mn cubic metres (mcm) of gas on a daily basis. "Unfortunately, in the previous government, Turkmenistan's gas exports to Iran were cut off due to the delay in payment of Turkmenistan's dues," he said, noting that the issue was referred to the International Court of Arbitration and the court determined the exact amount of Iran's debt to Turkmenistan. "Fortunately, with appropriate planning that we had already done, positive negotiations were done to settle the mentioned debt," the Iranian oil minister noted.
Petrochemical production rose 8% y/y in Iran during the first half of the Persian calendar year (March 21-September 22), the National Petrochemical Company (NPC) announced on October 20, state-run energy news company Shana reported.
Jalal Mirhashemi, the NPC’s director for production control, reportedly put the six-month petrochemical output at 32.8mn tonnes.
Demand for petrochemical-based healthcare products like face masks has helped drive petrochemical production amid the coronavirus pandemic, Mirhashemi was cited as saying.
He added: "All conditions and infrastructure have been provided to achieve a leap in production in the Iranian petrochemical industry in the current year; with the measures taken this year, the idle production capacities of some existing complexes will also be revived.”
The petrochemical industry plays a crucial role in Iran’s non-oil economy. Petrochemical exports make up the second-largest source of revenue for the country after crude oil.
Former Iranian oil minister Bijan Namdar Zanganeh said prior to leaving office in August that Iran was producing nearly 70mn tonnes of petrochemical products per year and was in the midst of a “second production leap” that would take output to 100mn tonnes/year.
Iran’s plentiful oil and gas reserves mean it can produce more than sufficient cheap feedstock for petrochemical production.
Iranian Petroleum Minister Javad Owji has said his ministry plans to attract $145bn in foreign and local direct investment for Iran's oil industry over the next four to eight years, while observing that the 13th presidential administration of the Islamic Republic is determined to bolster cooperation with Chinese companies, official energy news agency SHANA reported on September 21.
Owji's comments came after a meeting with Zhong Guidong, president of the office of China's Sinopec in Iran, on September 21. It followed Iran’s accession into the Shanghai Cooperation Organisation (SCO), which might unlock financial investment from countries like China and other members despite ongoing US sanctions levied against the Iranian oil industry.
“Last week, during my visit to the operational areas of Khuzestan Province, I visited Yadavaran Field, the first phase of which was developed by this company [Sinopec], and I was informed about the details of the development of the first phase of this field,” Owji said.
The minister added that Iran stood ready to co-operate fully with Chinese companies to develop oil industry projects in the upstream and downstream
46 IRAN Country Report November 2021 www.intellinews.com