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underprivileged families.
There are currently 2,400 CNG stations
across Iran that supply 22 percent of the
country’s fuel basket.
Iranian Oil Ministry considers CNG as the
national fuel, therefore, in order to increase
the share of this fuel in the country’s energy
basket, it is planned to turn 1.46 million
public vehicles into dual-fuel cars, which can
increase CNG consumption by 10 mcm per
day.
Back in May, NIOPDC announced that
cross-border pipeline was put of service by imports of liquefied natural gas (LNG) in the necessary infrastructure is prepared for
an explosion—will resume by mid-July at recent months, including from the Us, and developing the CNG sector to be able to
the latest, a senior Iranian gas official was the word on the market is that the LNG has distribute 30 mcm per day of gas across the
quoted as saying on June 7 by the Iranian oil been secured at prices substantially below the country.
ministry-controlled shana news agency. gas contract price with Iran. According to data “The Oil Ministry and National Iranian Oil
Mehdi Jamshidi-Dana, former director for from s&P Global Platts Analytics, turkey has Products Distribution Company have created
dispatching at state-owned National Iranian taken 24 cargoes of Us LNG already in 2020, the infrastructure for the development of the
Gas Company (NIGC) and presently interim compared with 13 for the whole of 2019 and CNG industry, only in the conversion sector
caretaker of its Gas transfer Company, added just four in 2018. development measures should be taken,”
that NIGC has rejected a claim from turkey bne an official with the company told shana.
that the suspension of supplies represented a Hamid Qasemi Dahcheshmeh noted that Oil
force majeure event, meaning Ankara could Monthly consumption of Ministry has been supportive of the industry
avoid paying for gas not taken under the two since very beginning through supporting the
sides’ 25-year take-or-pay contract that came CNG falls 40% in Iran production of CNG-powered engines and
into effect 19 years ago. converting automobile plants to produce dual-
“We predict that the repair of the Iran- Consumption of compressed natural gas fuel cars in this regard.
turkey gas pipeline will end in the [Persian] (CNG) in Iran dropped 40 percent during the “In the previous years, 920,000 vehicles
month of tir [June 21-July 21] and gas flow first month of the current Iranian calendar were converted through the Oil Ministry’s
will resume,” he was also cited as saying. year (March 20-April 19) from its preceding direct contracts,” he added.
Repairs to the pipeline had still not been month, IRNA reported. tehran tImes
completed despite work following such According to Mohammad-Hossein
incidents usually taking around three to seven Bagheri, the acting operator of National
days, Jamshidi-Dana said recently. Iranian Oil Refining and Distribution ser VIC es
“Iran has announced in writing that it does Company (NIORDC)’s CNG projects, the
not accept this is a force majeure event. In consumption of the mentioned fuel declined Kuwait’s HEISCO to execute
several correspondences, we said Iran is ready due to the travel restrictions following the
to repair this pipeline within eight days but coronavirus outbreak. “With the reduction $3.57mln pipeline works for
the turkish side didn’t welcome that,” he said of restrictions and the reopening of most
in his latest comments on the matter. turkey’s businesses, we are expecting an increase in KOC
energy ministry and gas importer Botas were CNG consumption and a return to pre-corona
yet to give a status update on progress in levels,” Bagheri told IRNA. Heavy Engineering Industries and
repairing the pipeline. Noting that CNG in the country had shipbuilding Company (HEIsCO) has
turkey imported 7.7bn cubic metres increased to nearly 24 million cubic meters signed a subcontract with the main
(bcm) of gas from Iran in 2019, equivalent (mcm) back in February following the contractor of Kuwait Oil Company (KOC)
to around 17% of its total gas imports. The implementation of the gasoline rationing for manufacturing and dyeing works for gas
long-term contract allows Ankara to buy up scheme, the official said following the pipelines, at a total value of KWD 1.1 million.
to 9.6bcm/year. Jamshidi-Dana warned that coronavirus outbreak and implementation of The eight-month deal will contribute
Iran could take the issue of the unresolved restrictions on travel in March, average CNG to a new pipeline construction project for
repairs and claimed force majeure to consumption fell to 20.8 mcm per day. transporting gas from the north of Kuwait
international arbitration if it was not dealt According to the official, CNG to Mina Al Ahmadi Refinery, according to a
with satisfactorily. consumption increased again in the second bourse statement on Monday.
However, he also emphasised that a month of Ordibehesht (April 20-May 19) after According to the disclosure, the
“friendly relationship and professional acting the travel bans were lifted. transaction will generate operating profits that
by turkey” would mean tehran would not Iran’s CNG consumption stood at 19 mcm will reflect on HEIsCO’s financial statements
take the matter that far. talks for an extension per day before the implementation of the fuel for fiscal year (FY) 2020/2021.
of the contract, meanwhile, were under way, rationing scheme. Last year, HEIsCO’s net earnings advanced
but have been slowed by the coronavirus In mid-November 2019, the Iranian by 16.4% annually to reach KWD 11.2 million
(COVID-19) pandemic situation, according government started rationing of subsidized from KWD 9.6 million in 2018.
to Jamshidi-Dana’s reported comments. gasoline and increased fuel prices as it mUbasher
turkey has been greatly stepping up plans to use the revenue for supporting

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