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CEO Stresses Need for Boosting Share of Natural Gas in Iran Energy Mix

TEHRAN (NIORDC) __ The CEO of the National Iranian Oil Refining and Distribution Company (NIORDC) said: "Natural gas is a national fuel, and its share in the country"s fuel mix should increase to an acceptable percentage."Alireza Sadeghabadi, during a visit to the plant for construction of CNG pressure tanks, underlined the importance of natural gas in Iran, saying: "Natural gas is incomparable with other fuels in terms of protecting the environment and economically; hundreds of billions of dollars have been invested in the development of the gas industry, as a result of which more than 90% of the country is covered by natural gas fuel distribution network."Referring to the role of compressed natural gas (CNG) in the transport fleet, Sadeghabadi said: "Registration of vehicles in the hybridization process should be accelerated."He stated that the most economical alternative to gasoline is CNG, adding: By $1 billion of investment, we can replace 20 million liters of gasoline with CNG, while if the refining capacity of 20 million liters of gasoline is created, it will take 15 billion dollars of capital and 5 years of time."The CEO of the NIORDC continued: "Replacing Liquefied Petroleum Gas (LPG) with gasoline has no advantage for the country and this will incur 100% costs for the country."He explained that LPG can at times get pricier than gasoline which makeThe Deputy Minister of Petroleum for Refining and Distribution Affairs stated: "When an LPG car burns, it is expected that it will be able to use this fuel in all places, while there is no infrastructure for the distribution of LPG in the country."He added: "Road transport of LPG increases accidents by increasing the traffic of roads, and also increases the use of diesel fuel subsidies."Pointing out that replacing LPG with gasoline is a negative profit alternative, Sadeghabadi stressed: "In economics, when there are limited financial resources, we must move in the direction of generating wealth, so the priority of investment is where there is a profit."CNG consumption speeding up Sadeghabadi, referring to the growing trend of CNG consumption in the country, stated, "In 2017, my impression was that the CNG industry was going bankrupt. CNG-burning vehicles were also being phased out. Consumption was about 19 million cubic meters, but now this figure has reached about 24 million cubic meters."He noted that the decision of the Supreme Economic Council to convert public vehicles free of charge has been a great task in the country: "Although there is a problem of liquidity and sanctions in the country, but the Economic Council defended the decision and the need to do so."Referring to the financial nature of the project, Sadeghabadi said: "During this process, for the first time, a bank was placed between the employer and the contractor. If this financial model had not been defined, cash flow problems would have doubled due to the country"s economic conditions."According to him, banks guarantee obligations between the employer and the contractor and create cash flow, so this financial model was implemented for the first time in the National Iranian Oil Products Distribution Company.He stressed that the capacities created in the CNG industry should be used both domestically and for exports. 

12:47 - 03/03/2021    /    Number : 12608    /    Show Count : 726