Oil Minister: Iran to Export Gasoline

Date: 06 February 2015 - 21:00

News ID: ۱۰۶۳۷

TEHRAN (Press TV) -- Minister of Petroleum Bijan Namdar Zangeneh says Iran will need no more gasoline imports next year when a major refinery being built in the Persian Gulf becomes operational.
Zangeneh said Iran will even turn to an exporter of gasoline and diesel once the Persian Gulf Star Refinery comes on stream. The next Iranian year, meant by Zangeneh, begins in March.
Gasoline stood out as the handiest lever when the United States first started its economic strangulation of Iran over the country’s nuclear energy program.
The measure forced Iran to convert some petrochemical plants to produce gasoline which is highly polluting.
The production of petrochemical gasoline was halted after President Hassan Rouhani came to office and imports resumed after Iran clinched a temporary nuclear agreement.
Iranians burn less than 70 million liters of gasoline a day, of which five million liters is imported, the minister said.
Zangeneh said he was "not worried” about gasoline and diesel supplies next year.
"With the completion of the Persian Gulf Star Refinery, 36 million liters (a day) will be added to the country’s gasoline and diesel production,” he said.
"And with the entry of one train of the refinery into generation, 12 million liters per day will be added to the country’s gasoline and diesel production. Half of this capacity is enough to dispense with gasoline imports next year,” Zangehen added.
The minister said, "With the operation of one train of the refinery, we will turn to an exporter of these two oil products.”
Iran is building the Persian Gulf Star Refinery in Assalouyeh at an estimated cost of 2.5 billion euros. The plant is further expected to produce 360,000 barrels per day of gas condensates on top of jet fuel and other products.
The country is building another oil refinery in Kermanshah in western Iran. Zangeneh said the project faces financing problems, but efforts are being made to work them out.

Foreign Firms Biding Time
Zangeneh says foreign energy companies are waiting to pounce on Iran’s oil and gas projects once sanctions are lifted.
The Islamic Republic is in talks with the U.S. and the Europeans and they hope to put decades of their standoff over Tehran’s nuclear energy program to rest.
Zangeneh says numerous negotiations have been held with international entities over the past one and half years over their participation in Iran’s oil industry projects.
"These companies are waiting for the sanctions against Iran to be lifted so that they can swiftly sign deals,” the minister told the national television during a live program.
"America and its allies however are trying with all their power to impede our work,” he said.
Zangeneh said the Americans even oppose a conference in London to present Iran’s oil development projects to multinational companies.
The conference was due to be held this month but it was delayed until later in the year without explanation.
Zangeneh says Iran has put forth its energy projects up for foreign investment both in the upstream and downstream sectors.
Sanctions, however, prevent foreign companies from participating in Iran’s massive oil and gas development schemes. U.S. companies face the most inextricable legal hurdles to dig in.
Western oil executives have already met Zangeneh during OPEC’s meetings in Vienna, including Italy’s Eni, Royal Dutch Shell and Austria’s OMV.
Zangeneh says Iran is making all its efforts to develop its fields even under sanctions.
"Right now, there is good work going on in the South Pars and western fields for gas and oil production. It’s not such that we should wait for the sanctions to be lifted. We are continuing our work in line with the resistance economy policies.”
Resistance economy is Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei’s recipe for Iran to mobilize the country’s resources to maintain development and withstand Western pressures.

Oil Glut Behind Price Declines
Zangeneh says market fundamentals are mainly to blame for crude oil price slumps even though political factors cannot be ruled out.
"The surplus oil in the market has been the main cause of price declines in recent months,” he told national television.
He said there is 2 million bpd of excess oil in the market which is expected to endure in the first six months of 2015.
"This has pushed down prices in the global market, not to mention the projections for August 2014 which had foreseen the situation.”
Zangeneh, however, said political factors also played a role.
"There is no doubt that political factors have had an effect to sustain the situation; but at what percent, one cannot say for sure,” he added.
The minister said while the United States had seized on the oil price decline to pressure Russia over Ukraine, Iran was less of a target.
"However, we think America and its allies had the intention to deal a blow to Iran,” he added.
Zangeneh further played down divisions among OPEC members, which came to light after they failed to agree on a production cut in the face of sagging prices.
He said those members which cite their fear of shale oil to push for lower prices should be given the benefit of the doubt.
"It is not acceptable to wrong a certain minister who says shale oil would leave the market and the market stabilize under low crude prices. It’s not acceptable to accuse him and raise a hue and cry; rather, we have to wait and see.”
Zangeneh was apparently alluding to Saudi Arabia, which is opposing any production cut.
The minister said despite all the differences, it is more advisable to remain in OPEC.
"I strongly believe that remaining in OPEC is absolutely to our benefit since it is much more convenient to speak from the stand of an organization which produces 30 million barrels of oil per day.”
Zangeneh further said higher oil prices have three advantages for the world: "Firstly, the production of expensive oil becomes economically viable; secondly, they (higher prices) make renewable energy viable and thirdly, they reduce and optimize consumption.”