Baku, Azerbaijan, July 23
By Elnur Baghishov – Trend:
Due to the US sanctions, Iran's liquified petroleum gas (LPG) exports dropped by 1 million tons last Iranian year (March 21, 2018 to March 20, 2019), Iranian expert on oil and energy Mohsen Salehi told Fars News Agency, Trend reports.
According to him, about 8.3 million tons of LPG were produced last year in Iran, and about 2 million tons of it was consumed domestically.
"About 5 million tons of LPG were exported last year, while 6 million tons of gas were exported in the preceding year,” he said.
Salehi went on to say that China, considering the sanctions and being Iran's main customer of LPG, is negotiating extensively for discounted prices.
He also said that while looking at the purchases and sales made at Iran's energy stock market, it is evident that the export of LPG is currently being made at a 20-30-percent discount rate.
"That is, if the global gas price stands at about $500 per 1 ton, Iran sells it at a price of $100-150," he said.
The expert noted that at present, Iran's annual revenue from exports of LPG makes up about $2 billion.
"This figure makes up about 1-2 percent of all of Iran’s foreign currency revenues. Therefore, the conversion of LPG into [other] exportable products such as propylene can be effective in increasing foreign currency revenues," he said.
Salehi said that due to a lack of infrastructure necessary for the conversion of LPG to other products, Iran has to sell LPG at any price offered by buyers.
"This is because if the gas [i.e. LPG] is not exported, additional gases must be burned. Iran has been using the gas [i.e. LPG] for many years, but this substance is exported only in its raw form," he said.
The US imposed sanctions on Iran in November 2018 and has subsequently expanded its list of sanctions.
