Iran plans to produce a daily volume of 8 million liters of high quality gasoline and gasoil based on Euro 5 standard by late May, an Iranian official announced on Saturday.
“It was decided that a daily volume of at least 8 million liters of fuel based on Euro 5 standards should be produced and sold at the gas stations,” Deputy head of Iran’s Department of Environment, Ali Mohammad Shaeri told Fars News Agency.
“Maximum by the end of June, 2011, the gasoline and gas oil sold to the public will be based on Euro 5, at least in Tehran,” Shaeri added.
Iran’s daily gasoline production capacity will soon increase by 6.5 million liters once the huge national gasoline production project in the country’s Southwestern Abadan refinery comes into stream in February.
“The huge project for increasing the gasoline production capacity of Abadan refinery is on the verge of official inauguration,” Managing Director of Abadan Oil Refinery Company Abdolreza Mehraban told reporters late December, adding that the project is already complete by 90 percent.
Earlier in October, an Iranian oil official announced that the country can still boost its gasoline production capacity by activating the potential production lines existing in different parts of the country.
Iran boosted gasoline production so much that in September 2010, the country started exporting gasoline.
“The first shipment of Iran’s gasoline has been exported,” Manager of International Affairs at the National Iranian Oil Company Ali Asqar Arshi announced at the time.
Also in the same month, Iranian Oil Minister Masoud Mirkazemi announced that the country has increased domestic gasoline production to 66 million liters per day, meaning that Iran no more needs foreign imports.
Iran has increased its gasoline production by 50 percentage points to become self-sufficient in the sector, Mirkazemi said at the time.
Iran’s daily gasoline production has increased from 44 million to over 66 million litters, which means Tehran no longer needs to import gasoline, he added.
The country plans to increase its gasoline production by 10 million litters within the next three months as a sign to show the sanctions imposed by the west are worthless, Mirkazemi said in December.
“With the inauguration of the development projects of Iran’s oil refineries next month, we can increase our gasoline production capacity by at least 10 million litters,” he added.
In late November the minister said more than one billion liters of gasoline has been produced in the country, rendering enemy efforts to ban gasoline sales to Iran ineffective.
He said Iran had been able to cut dependence on imported gasoline substantially since the implementation of an emergency gasoline production scheme at the country’s petrochemical units since July.
Electricity Bourse Ready for Inauguration
The Iranian electricity bourse will be launched next week, deputy energy minister in electricity and energy affairs said adding buying and selling electricity in this bourse will take place instantaneously.
Mohammad Behzad told IRNA that based on an agreement between the energy ministry and Securities and Exchange Organization of Iran, the electricity bourse will be officially inaugurated next week.
The official noted that the average price of each kilowatt of electricity is 450 rials (around 5 cents) during the first phase of the Subsidy Reform Law, which is not the final price for generating electricity in the country.
“The average final price of each kilowatt of electricity will be 1000 rials (around 10 cents) in 2015. People will only pay for 45 percent of the final price of electricity in the first phase of the Subsidy Reform Law and the government will pay 55 percent of the final price as subsidy,” he stated.
He recalled that the price of initial resources for generating electricity and consumed fuel costs have been considered in the final price of electricity.
The official said the global prices of electricity will increase in the next five years.
“We intend to increase the efficiency of power plants and reduce wastage of electricity in the national grid so that the final price of electricity in the country would be compatible with the global rate,” he concluded.
Figures released by Iran’s Ministry of Energy say the country’s power exports topped 4,918 MWH between March 21 and December 28, which amounts to a 6.12-percent rise in comparison with the same period in 2009.
The Islamic Republic currently transfers electricity to and from Afghanistan, Armenia, Azerbaijan, Iraq, Pakistan, the Republic of Nakhjavan, Turkey and Turkmenistan.
Iran’s exchange of electricity transmission with the countries reached 1,341 megawatts in late December, which reflect that most imports originate from Armenia, amounting to 237 megawatts, and highest exports are destined for Iraq, totaling 650 megawatts.
The total of Iran’s electricity exports to Afghanistan, Iraq, Azerbaijan, Armenia, Pakistan and Turkey reached 878 megawatts and the total of imports from Armenia and Turkmenistan was recorded at 463 megawatts.
Earlier in December, the Iranian Energy Ministry said Jordan, India, Oman, Qatar, Russia, Syria, and the UAE are the new countries that have expressed interest in acquiring electricity from the Islamic Republic.
Iran seeks to become a major regional exporter of electricity and has reportedly attracted more than $1.1 billion in investments to build three new power plants.
New Target Markets For Petrochem Products
Africa and Latin America are the new target markets for Iranian petrochemicals exports, Petrochemical Commercial Company of Iran (PCCI) announced.
Director of Planning and IT department in PCCI, Yusof Mosafer, said that Iran tends to boost its petrochemicals exports to Africa and Latin America in the next Iranian year (which starts March 21, 2011), IRIB reported.
China will be the first priority of PCCI for exports in the next year, he said adding that “European countries, India and South-west Asia are among the next priorities.”
During the first nine months of the current Iranian year (started March 21) Iran has exported 10.32 tons of various petrochemicals products valued at $6.45 billion.
Currently, Iran is the first ethylene exporter to European Union, and it ranks second in terms of selling ethylene to China, Reza Hamzehlou added.
Earlier, Managing Director of Iran’s Petrochemical Commercial Company Reza Hamzehlou said that Iran has overtaken Saudi Arabia in terms of Petrochemical exports.
The official put the value of Petrochemical Commercial Company exports at $4.7 billion during the last year. While the figure has hit $7.2 billion since March 2010, indicating a 52-percent growth, he pointed out.
He continued that close to 31 million tons of petrochemical products were produced across the country, of which 12 million tons were exported via Petrochemical Commercial Company and six million tons were sold inside the country.
Hamzehlou elaborated that currently 7,000 downstream companies are active in the country’s petrochemical sector.
IRICA Will Expand Cooperation With WCO
Iran will introduce a permanent representative of IRICA to World Customs Organization (WCO) for bolstering cooperation regarding standards and expansion of trade, New Chief of Islamic Republic of Iran Customs Administration (IRICA) said.
Addressing his induction ceremony, Abbas Me’marnejad said, “IRICA is not just an entity that receives the government’s incomes and it is not a preventive bureaucratic apparatus either.
IRICA, in fact, plays a big role in advancement of the country. Among important duties of IRICA is supporting production, exports and consumers and also facilitating trade through utilizing suitable standards, he added.
The official said he will pursue his plans with continuing rectifying the IRICA, Mehr News Agency reported.
“One of the plans of economy minister (Shamseddin Hosseini) was to improve IRICA and this will be one of my most important plans. I believe that IRICA in addition to being a national organization is also an international entity because of its type of activities,’ he noted.
He emphasized that IRICA shoulders the task of creating a logical and optimum interaction for facilitating trade and implementing laws and regulations as well as confronting violations.
Iran, Turkey Negotiate Gas Transit
Iran’s gas will be transited to gas consuming countries via Turkey, Oil Minister Masoud Mirkazemi announced.
Talking on the sidelines of a meeting with his Turkish counterpart in Tehran, Mirkazemi said energy issues were the main topics of discussion saying regarding the existence of mutual understanding, the two countries are benefiting good relations and are capable of dealing with the problems easily, Shana reported.
Global recession, Turkish problems on issues related to gas consumption, the neighboring country’s interest in gas transit from Iran as well as Turkish private companies’ interest to invest in Iran’ oil sector were other topics on the table, Mirkazemi noted.
Elsewhere in his remarks Mirkazemi said that following the establishment of a sub-committee on Saturday, the two sides would finalize mutual agreements in the next session of the committee.
Noting that the Islamic republic of Iran is one of the main oil and gas suppliers to Turkey, he added “The two countries have a long term gas contract and gas export to turkey has increased to 30 million cubic meters per day since last year.”
Turkish Energy Minister, for his par, said Iran is one of the main exporters of gas and oil to turkey adding the two countries are capable to expand oil and gas cooperation.
“While the impacts of global recession have not been removed fully so the producers and consumers should solve the problems through mutual cooperation,” Taner Yildiz noted.
On investment in the South Pars gas field, the Turkish official said Turkish private companies operating in oil and gas sector are free to invest in Iran’s oil and gas sector.
Exports to ECOWAS on Rise
Iran’s exports to the Economic Community of West African States (ECOWAS) increased 18 percent during the first eight months of the current Iranian year (March 21-November 21, 2010), Iran Trade Organization’s deputy for marketing said.
“During the recent months, Iran-ECOWAS trade has followed an increasing process,” Reza Tofiqi said adding that the bilateral trade has increased 18 percent during the mentioned period, Moj News Agency reported.
Expansion of commercial ties with ECOWAS is on Iran’s agenda due to the economic importance of the member states of the community, he said.
Iran tends to boost ties with ECOWAS in various fields including industries, transportation, energy, commerce, natural resources, financial issues, and culture, Tofiqi concluded.
The Economic Community of West African States (ECOWAS) is a regional group of fifteen countries, founded in 1975. Its mission is to promote economic integration in “all fields of economic activity, particularly industry, transport, telecommunications, energy, agriculture, natural resources, commerce, monetary and financial questions, social and cultural matters.
IKCO Plans to Up Production
The country’s giant car manufacturer, Iran-Khodro Company (IKCO) has planned to produce and market 30,000 Samand SEs in the next Iranian year (which starts March 21), IKCO’s Vice-President for Production said.
“The car production volume depends on the market condition, if it is welcomed, production will rise,” Javad Dehnadi added.
He also stated that IKCO experts’ endeavors have resulted in 34 significant changes in Samand SE’s hi-tech systems considering performance and quality levels of international standards, Fars News Agency reported on Saturday.
New durable axle, improved suspension system and modern multiplex system, new trim and better maneuverability are some of Samand SE specifications. The axle for SE bears 150 kg more load. The multiplex system in SE replaces different scattered control units with highly concentrated electronic units, brings about a high quality performance and prolongs battery lifetime. It also eases the fault detection process by diagnostic tools.
There have been some modifications to the trim and outer parts such as audio system and instrument panel. The new design of the instrument panel makes it easier for the driver to access control buttons.
Iran-Khodro is the largest carmaker in the Middle East, Central Asia and North Africa, with an annual production of more than one million vehicles of various models, including cars, trucks, minibuses and buses.
IKCO is also ramping up exports as it builds a global presence outside Iran.
The company officials have said they want to boost annual production to more than a million vehicles and hike exports to more than 600,000 by 2016.
IKCO has also begun kit assemblies in Azerbaijan, Belarus, Venezuela and Argentina, with plans to add assembly in Egypt, Vietnam and China in the next year or two.
The vehicle of choice for most of these local assembly operations is the Samand, a compact sedan based heavily on the Peugeot 405 platform and with the price starting at about $9,000. “Samand” is the Persian name for a local breed of horse.
Market observers believe that Samand could challenge future Chinese and Indian imports at the low end of the market.
Samand trade name is now registered at the World Intellectual Property Organization (WIPO).
Iran-Khodro group, the Iranian car manufacturer and owner of Samand, is the first Iranian company whose product is registered at the WIPO. Algeria, Egypt, Mauritania and Senegal are the African countries that have witnessed Samand march on their streets so far.