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    Iran Cuts Natural Gas Price for Petchem Plants

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Summary

Iran is preparing to cut the price of natural gas as a feedstock for petrochemical plants to about $82/’000 m³ for the next six months...

by: Iran desk

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Natural Gas & LNG News, Corporate, News By Country, Iran

Iran Cuts Natural Gas Price for Petchem Plants

Iran is preparing to cut the price of natural gas as a feedstock for petrochemical plants to about $82/’000 m³ for the next six months, the deputy minister of oil for planning and supervision of hydrocarbon reserves Mohammad-Mehdi Rahmati told Shana on April 11.

He said that the final price hasn’t been set yet, but it would be announced in a week. “The final price of  gas may vary from $81 to $83,” he added.

It will be the first time for two fiscal year that Iran has cut the gas price for petrochemicals despite falling oil prices since mid-2014.

The price for the last two fiscal years, ending March 20, was $130/’000 m³.

According to the official statistics, Iran delivered about 16.72bn m3 of natural gas (methane) to petrochemical plants in the last fiscal year, of which above 5bn m3 were used as feedstock. The rest was used as fuel, at $88/’000 m³.

Iran produced 46mn mt of petrochemicals during last fiscal year, of which 19mn mt were exported. Iran also consumed 1.525mn mt of ethane and 5.382mn mt of gas condensate in petrochemical plants in the last year.

 

Iran desk