Following the plans to privatize power plants construction projects, the Cabinet agreed to cede five incomplete power plant projects to the private and cooperative sectors in order to optimize the national electricity network.
Based on this approval, the Iranian Privatization Organization (IPO) has been permitted to assign incomplete power plant projects of Orumieh, Chabahar, Ardebil, Qa’en and Jahrom to contractors in the private and cooperative sectors as introduced by the Energy Ministry.
These contractors are obliged to implement projects for optimization and renovation of the national electricity network in order to reduce wastage of electricity network nationwide and wastage in rural water and wastewater projects. The contractors should also report on the progress of their related activities to IPO via Energy Ministry on a monthly basis.
Five incomplete power plant projects have been ceded to the private and cooperative sectors while at the beginning of 2010-2011 the plan was to cede 10 incomplete projects.
The official in charge of the plan for privatization of power industry, Hossein Abdolkhaleqzadeh said the total output rating of the 10 power plants is 8,600 mega watts.
“In addition to the 10 previous power plants which were introduced to the IPO, whose ceding was delayed due to the problem of debts, 10 other power plants which do not have the debt problem have been introduced to the IPO upon the order of energy minister, Majid Namjou,” he noted.
Shahid Montazeri Power Plant (Isfahan), combined cycle power plant in Gilan, combined cycle power plant in Fars, Khoy, Montazer Qa’en, Tabriz, Tous , Mashhad and Loshan power plants have been introduced to IPO for being ceded.
The total output capacity for these power plants plus the 10 power plants which were previously introduced to the IPO is 17,000 mega watts.
Upon ceding the 20 power plants to IPO, some 40 percent of the capacity of power plants nationwide will be assigned to the private and cooperative sectors.
Abdolkhaleqzadeh expressed hope that the fate of the 20 power plants for being ceded to the IPO will be clarified this year.
“Purchase of the power generated by the ceded power plants will be done in a guaranteed manner and buying and selling of the power of the power plants which meet the market requirements will be done within this framework.
Even if these power plants are prepared to sell their generated power and the Energy Ministry does not need electrical power it is obliged to purchase power from them,” he noted.
Namjou recently said ceding power plants to the private sector will start in 2011 and completing the task takes two years.
He said eight power plants are planned to be ceded to the private sector.
Iran Plans to Up Petrochemicals Production
Iran plans to boost the annual production of petrochemicals to 100 million tons by March 2016 through implementation of 70 projects.
Managing Director of the National Petrochemical Company (NPC) Gholam-Hossein Bayat announced on Sunday the country’s plans on the increase in the annual NPC products that would reach 100 million tons at the end of the Iranian year of 1394 (March 20, 2016), Fars News Agency reported.
Addressing a number of NPC staff members, Bayat said 70 projects are planned to be implemented in order to achieve that goal.
He further called for construction of new petrochemical complexes to balance the gas production increase in the South Pars gas field.
The National Petrochemical Company’s production reached 34.4 million tons last year, the NPC chief said.
In case no problem arise, the NPC would be capable of producing 17 billion liters of gasoline per day, Bayat added.
The petrochemicals industry has become an important aspect of Iran’s non-oil economy and the basis of the country’s economic diversification.
Around 40 percent of non-oil exports totaling $6.5 billion were from the petrochemicals industry in fiscal year 09/10. This can attract foreign investment in the country.
BMI estimates that Iranian petrochemicals output totaled approximately 30 million tons in 2009/10, an increase of 13 percent year-on-year (y-o-y).
A $25 billion investment outlay is planned for 2010/11 to help meet these targets, with the beginning of the construction of 46 new petrochemicals projects adding 50 million tons per annum (tpa) to capacity. Twenty-nine projects are already being built at the cost of $18 billion, adding 22.5 million tpa to current production capacity.
In Q1 2010, NPC commissioned six petrochemical complexes in Assalouyeh, on the southern coast of Iran, including a complex with capacity for 645,000 tpa of ethyl benzene and 600,000 tpa of styrene belonging to NPC subsidiary Pars Petrochemical; a 1.65 million tpa methanol complex owned by Zagros Petrochemical; and a 245,000 tpa butadiene plant operated by Jam Petrochemical.
Several new jetties at the Pars petrochemical port in Assalouyeh were also completed, bolstering its position as one of the major specialized ports in the Middle East for exporting petrochemicals products. It has the capacity to export 35 million tpa of liquid and solid products.
In April 2010, Oil Ministry announced that work was underway on the privatization of the refining sector. Oil Minister Masoud Mirkazemi told Mehr News Agency that “all petrochemical units and refineries” will be sold to private hands.
Privatization is being carried out under the terms of Article 44 of the Iranian constitution, which requires 80 percent of the country’s state-owned companies to be sold.
Joint Investment Companies With Turkey
Iranian Labor Minister Abdolreza Sheikholeslami in a meeting with Turkish Minister of Public Works and Housing Mustafa Demir proposed establishment of joint investment companies by Tehran and Ankara.
“Establishing joint companies which would run activities in the two countries or in the third countries is a good proposal for promoting the level of relations between Iran and Turkey,” Sheikholeslami said Saturday, Fars News Agency wrote.
He stressed that Iran spares no efforts to settle problems in its mutual cooperation with Ankara, and reminded that success in achieving goals and fulfilling plans depends on the level of attention the officials of the two countries pay to the issues under discussion.
Materialization of the Memoranda of Understanding (MoU) signed by the two countries requires continued monitoring and supervision, Sheikholeslami continued.
Mustafa Demir expressed satisfaction over bilateral ties and said, “The visit aims to promote two-way cooperation.”
Iran and Turkey have in recent years boosted their cooperation in different fields of economy, security, trade, education and culture.
Turkish Minister of Agriculture and Village Affairs Mehmet Mehdi Eker announced in May that the volume of trade exchanges between Iran and his country has increased to $5.5 billion.
Both Iranian and Turkish officials are striving hard to boost the two states’ annual trade volume to $20 billion.
Oil Production to Rise
Iran plans to increase its oil and gas production by the end of the Fifth Development Plan.
An Iranian lawmaker said Iran’s crude oil production capacity should increase by one million barrels per day (bpd) by the end of the Fifth Development Plan.
Based on the Parliament’s (Majlis) recently-approved article, the Oil Ministry should plan to increase the country’s capacity of crude oil production to 5.1 million bpd, said Hassan Vanaei, member of the Majlis commission supervising the Fifth Development Plan, Shana reported on Sunday.
He said the country’s oil production experiences a decline of 300,000 barrels annually, adding that the estimated rise of 1 million bpd does not include the annual decline.
The Oil Ministry should add 1 million bpd to the oil production capacity by the end of the Fifth Development Plan in 2015, Vanaei added.
The Iranian lawmaker said according to the commission’s new article the production of gas and gas condensates should also reach 1.1 billion cubic meters per day by the end of the Fifth Development Plan.
Iran has the second largest gas reserves in the world after Russia and ranks third in crude oil reserves.
Meanwhile, a senior Iranian oil official said domestic production of equipment in the nation’s upstream oil industries has grown four-fold in as many years.
Managing Director of the National Iranian Oil Company (NIOC) Ahmad Qal’ebani said on Sunday that a comparison of import figures in the country’s upstream oil industries over the past four years indicates local producers’ share of the market has quadrupled during that period, reported IRNA.
“Procurement of equipment and goods accounts for around 60 to 65 percent of any oil project”, said the official.
“Supplying equipment is the lifeblood of production … and requires special attention”, Qal’ebani further said.
Highlighting government plans to back domestic producers, the official added this support will make the oil industry more reliant on local production, prevent the outflow of foreign currency, and neutralize sanctions.
“It will also create jobs,” Qal’ebani underlined.
He reiterated proper policies and measures are required to tap into domestic technological capabilities, which, he added, could result in a competitive industry with export potential.
He said the NIOC will spare no effort to support local producers.
Azeri Envoy Calls for Further Ties
Azerbaijan’s Ambassador in Tehran Javanshir Akhoundov underlined his country’s enthusiasm for bolstering economic and trade relations with Iran.
“Given the two countries’ abundant commonalities, we seek the expansion of relations between Iran and Azerbaijan, specially in trade relations,” Akhoundov said in a meeting with Iranian businessmen and capital holders on Sunday, Fars News Agency reported.
The envoy further expressed dissatisfaction with the current level of economic exchanges between the two countries, and said that Iran and Azerbaijan exchange only $600 million worth of goods annually, while the figure can increase to $10 billion.
Akhoundov noted Iran’s progresses and self-sufficiency in different fields, and stressed that Iran enjoys abundant developmental infrastructures which can be utilized for both countries’ progress.
Iran has recently enhanced efforts to boost political, economic and cultural ties and cooperation with the regional and neighboring countries, specially those in the Central Asia.
Iranian President Mahmoud Ahmadinejad and his Azeri counterpart Ilham Aliyev in a meeting in Istanbul, Turkey in June stressed the two countries’ resolve to bolster mutual cooperation in various fields.
“There reside abundant capacities for increasing cooperation between the two countries in different cultural, economic and energy fields and utmost use should be made of all these capacities,” Ahmadinejad said during the meeting held on the sidelines of the international conference in Istanbul on Interaction and Confidence-Building Measures in Asia (CICA).
Aliyev, for his part, stated that Baku seeks further activation of the existing potentials and utilization of the capacities existing in the two countries in a bid to strengthen cooperation and coordination with Iran in bilateral and international issues.
The first exhibition of Alborz province trade and industry will be held in the province’s capital city of Karaj on October 12.