Page 42 - IRANRptJun20
P. 42
Iran’s natural gas transfer capacity ‘has reached billion cubic metres per day’
repair the damaged pipeline. The news agency added that the situation might be due to efforts by the US to provide liquefied natural gas (LNG) to Turkey. Iran annually sells around 10bn cubic metres (bcm) of gas to Turkey under a 25-year supply deal signed in 1996.
Iran’s natural gas transfer capacity has reached one billion cubic metres per day, having increased by 150mn cm per day in the past four months, the director of dispatching at the National Iranian Gas Company was cited as telling IRNA by Tehran’s Financial Tribune on May 9.
“The gas network has the capacity to supply one billion cubic metres of gas [on a daily basis] to households, industries and power plants. This is up 18% compared to January when it was 800,000 [cm] per day,” Mehdi Jamshidi Dana reportedly said.
Pipe laying work to link the South Pars Gas Field onshore refineries in Asalouyeh, located in southern Bushehr province on the Persian Gulf, to the Iran Gas Trunkline (IGAT) was carried out over the past three years and was near completion, he added.
Referring to Iran Gas Trunkline 9 (IGAT-9, aka Europe Gas Export Line), which originates east of Asalouyeh and passes through western provinces before reaching Turkey’s border, Jamshidi Dana was quoted as saying that it was the least developed pipeline of the set of pipelines in 2018 but was by now complete.
Iran continues to work on infrastructure that would mean all of its available extra natural gas via IGAT could be either exported or turned into value-added products such as electricity.
9.1.2 Automotive sector news
Iran plans CNG fuel conversion scheme for 1.5mn vehicles
Iran’s trade minister fired amid row over liberalising car market
The Iranian government has announced a plan to convert some 1.46mn vehicles to run off compressed natural gas (CNG), YJC has reported. The project is aimed at diverting a substantial number of vehicles away from heavily subsidised petrol sales—taking into account, the oil price collapse of late, these sales are hammering Iranian state coffers. Iran is self-sufficient in the production of CNG, while car manufacturers in the country, including top two Iranian automakers SAIPA and IKCO, both offer CNG vehicle models. The project will be conducted by the National Iranian Oil Refining and Distribution Company (NIODC) through several phases, including one that arranges private vehicles at a reduced cost.
In the first phase, owners of taxis will be given free-of-charge conversions. Other commercial vehicle owners will be given reduced rates if they opt to convert.
The plan will open to private vehicle owners in the second phase to run within the next two years, according to NIODC.
There is a cut-off for vehicle owners, with older models excluded from the broader plan.
The cost of the scheme is estimated at €600mn (at the tertiary exchange rate) over the life of the plan; however, overall savings stemming from the removal of vehicles from petrol sales demand would amount to significantly more per annum, officials said.
Iranian President Hassan Rouhani has appointed a caretaker industry, mines and trade minister after firing Reza Rahmani for not following orders, Asbe Bokhar reported on May 12.
Rahmani’s departure appears to have occurred after a big behind the scenes
42 IRAN Country Report June 2020 www.intellinews.com