Page 44 - IRANRptJul20

Iran ‘expects 30% fall in petrochemical export revenues due to pandemic impacts’
The South American nation, like Iran under the cosh from US sanctions, is suffering a scarcity of basic goods and Tehran clearly sees coming to its aid is a useful way of poking Washington in the eye. Lately, Iran sent a flotilla of fuel-laden tankers to Venezuela to ease the country’s critical shortage of gasoline.
The foodstuffs would be used to stock the first Iranian supermarket in Venezuela, Iran's Embassy in Caracas tweeted on June 20. It added that the delivery would mark “another success in friendly and fraternal relations between two countries”.
Iran has also provided Venezuela with key ingredients needed to restart sanctions-hit refineries and resume producing its own gasoline.
Washington has cautioned governments, seaports, shippers and insurers that they could face measures if they aid Iranian tankers shipping fuel to Venezuela.
Iran's petrochemical export revenues will contract by nearly one-third year on year given market impacts of the coronavirus (COVID-19) pandemic, according to the Iranian government-owned Press TV broadcaster.
The revenues would shrink by at least 30%, a report from parliament's Research Center cited by the media outlet has concluded. Depressed prices as well as problems with the transportation of goods across borders and by sea amid pandemic restrictions would be the main cause, the report added. Press TV gave an official figure of $12bn per annum for Iran’s petrochemical earnings.
The slump in demand was expected to make a clear and immediate impact on Iran's sales of methanol, liquefied petroleum gas and aromatics, while it was predicted that demand for other products such as polymers, urea and ammonia would gradually decrease over coming months.
Petrochemical exports have served as an increasingly important component of Iran's hard currency income since the US in 2018 re-imposed heavy sanctions on the country.
9.1.2 ​Automotive sector news
Iran plans CNG fuel conversion scheme for 1.5mn vehicles
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
44​ IRAN Country Report July 2020 www.intellinews.com