Iran Petroleum Issue No. 101 December 2021
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MONTHLY Iran Petroleum Issue No. 101 December 2021 Iran Seeks to Diversify Petchem Exports Iran Petchem Jumps 50-Fold in 50 Years Kasra Nouri Director General of Public Relations ecember 28 marks National to jumps in the petrochemical industry, Petrochemical Day in thereby increasing the production Iran. The petrochemical capacity in terms of diversity, marketing industry began in Iran 57 and exports. Iran’s output has now years ago. In 1977, Iran had reached 77 million tonnes, which would Dbrought its petrochemical production soon reach 100 million tonnes. The to 3 million tonnes. Following the 1979 figure forecast for the petrochemical Islamic Revolution, the country made production to reach by 2025 is 133 plans to gradually bring an end to crude million tonnes. It is also freocast to oil selling, making the petrochemical reach 150 million tonnes by 2027. Iran’s industry a priority for development. petrochemical development is pursued Industrial renovation, structural reforms based on the four elements of feedstock, and optimal production along with market, capital and technical knowhow. attention to local manufacturing and The petrochemical production is forecast development of technical knowhow were to be valued at $44 billion by the end among the major topics of petrochemical of the 4th National Development Plan. industry development over 40 years. Then Iran would become a petrochemical Over these years, the petrochemical hub in the world. Iran’s top position in industry has been subject to toughest the petrochemical sector must be seen ever sanctions in the oil and gas sector; against the backdrop of unjust and however, official data shows that Iran has irrational US sanctions. In the global managed to overcome all obstacles and village of the 21st century, there is no create an opportunity for self-sufficiency place for bullying. The countries that and self-reliance and develop local have imposed sanctions should not petrochemical technology. An outcome of sacrifice the future for their illegitimate this opportunity development reliance desires and steer from unfruitful on local forces along with interaction attempts aimed at stymieing progress with international companies has led by Iran. Ministry of Petroleum Islamic Republic 36 of Iran 10 Managing Editor: Kasra Nouri Europe Prospect Director General of Public Relations Chief Editor: Parastoo Younchi for Greenhouse Gas Deputy Chief Editor: Hamid-Reza Shakeri-Rad Emissions Mitigation Executive Editor: Negar Sadeqi Graphic Designer: Saman Goodarzi Photo Section, PR Office, MOP: 34 Hassan Hosseini Reporter: Mahnaz Mohammad Qoli Javad Asghari Translator: Kianoush Amiri Coordinator: Maryam Dehlavi Tel/Fax: (+98 21) 61626113 www.iranpetroleum.ir [email protected] Urmia, How South OPEC and Begging of Iran Energy Historical Pars Eased Iran Future Return to Ties with Russia, Circumvention Maximum Azerbaijan, City of Sanctions of Oil Output Armenia saman goodarzi Desing: COVER 58 2446 14 06 Top story December 2021 Issue No.101 MONTHLY Top story Iran Energy Ties with Russia, Azerbaijan, Armenia A high-ranking delegation from Iran’s Petroleum Ministry recently met with senior officials from Russia, Azerbaijan and Armenia with a view to broadening energy cooperation. During the meetings, Iran’s energy ties with the three countries as well as the latest oil market developments were discussed. Iran’s Minister of Petroleum Bijan Zangeneh, leading a high-ranking delegation, said upon arrival in Moscow he would exchange views with Russian officials on the world oil market conditions. “During this visit, we will have meetings with Russian state officials and oil companies, but our most important issue would be to study the latest developments in the world oil market that is currently in sensitive conditions,” said the minister. “Along with OPEC member states and allies, Russia has been instrumental and constructive over recent years,” he added. Zangeneh met with Russian Deputy Prime Minister Alexander Novak and Russian Energy Minister Nikolay Shulginov. They exchanged views on energy cooperation between the two nations and the prospect of global markets. Need for Energy Cooperation energy sector within the framework of joint the global gas market prices because the Zangeneh and Novak insisted on deeper business forums. structure of gas markets is different from the cooperation between the two nations, structure of oil markets,” he said. particularly in the energy sector. Iran Open to Russian Investment The Iranian minister highlighted Russia’s Zangeneh described Russia as Iran’s strategic Iran-Azerbaijan Oil Ministers Meet important and positive role within OPEC+, partner, saying: “We welcome Russian Upon return from Moscow, Zangeneh saying: “Cooperation between the two nations companies’ investment in the petroleum received Azerbaijan’s Energy Minister Parviz in the energy sector is daily growing.” “Under industry.” In his meeting with Shulginov, Shahbazov in Tehran to discuss the recent the present circumstances, in light of unjust Zangeneh said: “We discussed and exchanged developments in the region and the global oil US sanctions on Iran and Russia, upgrading views on the world oil market.” Noting that market. Zangeneh underlined Azerbaijan’s convergence and cooperation between Russia has, over recent years, played a decisive positive role as one of the members of the role in the stability of oil market in the world, alliance between Organization of Petroleum the minister said: “During this meeting, in light Exporting Countries (OPEC) and non-OPEC Russiathe two have, nations over would recent be years, significant had close and of serious cooperation within the framework members and stated: “Iran has close relations cooperationinfluential,” he in said.the oil Zangeneh and energy said sector, Iran and of OPEC+, we talked to each other. Our views with Azerbaijan and the oil cooperation adding: “We want deeper cooperation in were close to each other.” Zangeneh touched between the two countries is under the order to neutralize the consequences of on the OPEC+ ministerial meeting scheduled framework of the OPEC+.” Shahbazov for sanctions.” Noting that major developments for January 4, saying: “Both sides noted that his part mentioned the close political and had transpired the international scene, he these meetings are instrumental in preserving economic relations between the two countries said: “Under any circumstances, Iran-Russia world oil market stability and possible ties will not change and Tehran is determined scenarios in the future in this sector.” role in OPEC+ constructive decisions, saying: to strengthen its ties with Moscow.” “Asand part expressed of this coalition,gratitude wefor wereIran’s able significant to Bilateral Cooperation resolve the crisis of the oil market in April.” Iran-Russia Ties Zangeneh said he discussed development of “The OPEC+ mechanism is a good tool for For his part, Novak expressed pleasure cooperation between Iran and Russia, adding: amending the oil market in the current with the growing trend of ties between “We have good cooperation with Russian situation, but for it to be more effective, this Tehran and Moscow, saying: “Russia is coalition must be developed. It is true that we agreed on the expansion of long-term energy technical points were postponed to the near undoubtedly calling for further convergence them in the oil and gas sector and equipment are taking action, but the crisis still remains,” cooperation. After the meeting, Zamani-Nia, future, he said: "The two delegations in this manufacturing.”firms. We intend toZangeneh continue continued cooperating as with Shahbazov stressed. Referring to the country's who is Iran’s deputy oil minister for the meeting tried to take into account the mutual and energy sector.” He said: “Over recent saying that Russia was Iran’s strategic partner, need for natural gas as fuel for its power international affairs, said the talks on some interests of the two countries." Iran and years,with Iran consultations in all fields, between particularly OPEC in member the oil and Tehran-Moscow partnership would not plants, the Azeri energy minister said: "I hope technical issues of gas export and gas-for- Armenia signed a gas-for-electricity barter states and the OPEC+ alliance have been be affected by international developments. we can use Iranian gas, and I also appreciate electricity barter were postponed to the near deal in 2004, based on which, for a 20-year effective, and Russia has sought to play a “In case Russian oil and gas equipment the Iranian exports of gas to Nakhichevan." future, after which a long-term contract will period, Iran would export gas to Armenia to constructive role.” “Iran and Russia have manufacturers intend to operate in Iran they be signed. Vartanian, for his part, said, “We be consumed by the country’s power plants, always had close and growing cooperation have to comply with the law on “Maximum Iran-Armenia Gas Talks have been negotiating with Iran for a year and in return, Iran imports electricity from in the oil and energy sector and this Use of Domestic Potential”. They would Iran’s Deputy Minister of Petroleum for and a half about gas export and the extension Armenia. Armenia has started importing gas cooperation will keep rising,” he added. Iran have to work in partnership with Iranian International Affairs and Trade Amir- of the gas-for-electricity deal; today’s from Iran since mid-2009. Iran and Armenia and Russia also sketched out a roadmap companies,” he said. Zangeneh said that Iran Hossein Zamani-Nia received an Armenian meeting was one of the most constructive have been cooperating for years in gas and for developing cooperation regardless of and Russia were cooperating also within the delegation led by Hakob Vartanian, Armenia’s negotiations in this regard.” Emphasizing that electricity swap, and two-way economic and international political events, while calling framework of the Gas Exporting Countries’ deputy minister for local government and in the meeting the basic points were agreed political ties have grown in tandem with an for the implementation of agreements in the Forum (GECF).