Iran says it has sent its first cargo of gas condensate to Europe in a sign that shows the country is already expanding the market for its ultra light oil.
Managing Director of South Pars Gas Complex Masoud Hassani was quoted by the domestic media as saying that the cargo comprises one million barrels of condensate which can be used to make both fuel and plastic.
Hassani added that South Pars Gas Complex has produced over 125 million barrels of gas condensate over a period of eight months starting 20 March 2016.
The figure, he added, is higher by 18 million barrels compared to the same period last year.
The official further emphasized that most of the condensate produced in South Pars Gas Complex has been exported to Asia.
Iran sells the bulk of its condensate to South Korea. In mid-July, the foreign media reported a major rise of 115 percent in South Korea’s combined imports of crude oil and condensate from Iran. The jump was mainly associated with the country’s interest in cheap Iranian condensate.
Iranian officials have already emphasized that the country will be given more room for maneuver in the global energy market by converting condensate to products such as naphtha, aviation fuel and diesel.
To the same effect, Iranian officials have already announced ambitious plans to build at least eight new condensate refineries in Pars Special Economic Energy Zone. This is meant to prevent further sales of raw material in favor of selling the end products.
Once fully operational, the eight refineries will have a daily production capacity of 24,800 barrels of condensate. Other key products include 128,000 barrels of light naphtha, 148,000 barrels of heavy naphtha, 29,600 barrels of aviation fuel and 149,600 barrels of diesel.