All Power Plants in Iran to Run on Gas by March

More than 90% of power stations in Iran are running on natural gas as feedstock and concerted efforts are being made to stop using fuels like mazut to generate power by the end of the current fiscal year that ends in March 2018, the managing director of Iran Power Generation, Distribution and Transmission Company, or Tavanir, said.

"Mazut, an eco-unfriendly fuel, accounted for 45% of power plant feedstock in 2013, but declined to 8% in 2015and plans are underway to put an end to it in the shortest possible time," Arash Kordi was also quoted as saying by IRNA on Friday.

"Power plants are moving toward replacing polluting fuels with natural gas as a cleaner energy resource," he added.

Pointing to environmentally-friendly initiatives to reduce the consumption of low-quality fuel in power generating facilities, he noted that the government has instructed power plants and refineries to use gas instead of polluting feedstock such as mazut due to abundance of gas reserves and the output increase in South Pars Gas Field, the world's largest gas field, shared between Iran and Qatar."

"Power plants and other major fuel consuming industries have dramatically cut down on consumption of liquid fuel, especially mazut and diesel, over the past 18 months," the official said.

Reportedly, the National Iranian Gas Company aims to increase the volume of natural gas as feedstock to power stations to 68 billion cubic meters by March 2018. The company provided 86 power plants with 62 billion cubic meters of natural gas in the previous Iranian fiscal that ended in March 2017.

  Effective Communication

According to Kordi, supplying subscribers with regular electricity services requires creating new power generation capacities, yet the goal cannot be accomplished unless effective communication is established with domestic and international investors.

Referring to the disparity between real electricity prices and what consumers pay, he noted that investors are not willing to fund power ventures.

Data released by Energy Ministry show that among more than 200 countries, Iran sells the cheapest power on average at 700 rials (about 2 cents) per kilowatt-hour after India, Kuwait and China.

"There has been a tangible reduction in financing electricity projects in the last six years," he said, noting that as long as the power industry cannot generate decent revenues, it is very unlikely that national grid is expanded.

Attaching great importance to the key role of power industry in the country's development, the official noted that not removing the industry's financial constraints can hinder the country's advancement.

Kordi added that if electricity were sold at real prices, not only would the ministry not have to struggle with mounting debts to the private sector but it could also implement key development plans.

Experts say consumers pay a fraction of the real power cost. This has caused them to be oblivious to making prudent energy use, which burdens the Energy Ministry’s finances.

"Reasonable prices will also lead to judicious consumption, more investment and stronger participation of private companies in the power industry," he said.

News No: 1782
Date: 2018/01/13 - 01:45
News Source: Financial Tribune

Tavanir  South Pars Gas Field  National Iranian Gas Company 


Leave a Comment:


Iran Plans to Expand Regional Electricity Exchange

As per the Sixth Five-Year Economic Development Plan (2017-22), Iran Power Generation, Distribution and Transmission Company (aka Tavanir) has been obliged to boost the country's electricity trade with its neighbors on northwestern, western and eastern borders, a deputy manager of the company said.

Plan to Upgrade SP Power Station

Upgrading the South Pars Gas Field’s central power plant to the combined-cycle system has been planned, which can use both gas and steam to generate electricity, the director of production at Pars Oil and Gas Company said.

Iran Ethane Output to Rise 25%

Production of ethane from the giant South Pars Gas Field in the Persian Gulf is expected to rise by 25% in the present fiscal year (ending March 20, 2018) compared to the previous year, the managing director of South Pars Gas Complex said on Saturday.

IGAT-6 Launch in Late Dec.

The sixth Iran Gas Trunkline (IGAT-6)–a major component of the national gas grid–will go on stream by the end of December, a top gas official said.

Gas Exports to Turkey Top 5 bcm in 6 Months

Iran has exported 5.4 billion cubic meters of natural gas to Turkey during the first six months of the current fiscal year (March 21–Sept. 22) through the Bazargan district, a border crossing in West Azarbaijan Province northwest of Iran, the managing director of Iranian Gas Transmission Company said.

25% Rise in Iran Power Exports

Iran's electricity exports rose nearly 25% in the first six months of the current fiscal year (March 21-Sept. 22) from the same period of a year ago, a deputy energy minister said on Sunday.
Upcoming Events
Find a Job !
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners