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NIGC CEO: 7% Growth in Gas Allocation to Petchem Units

NIGC CEO: 7% Growth in Gas Allocation to Petchem Units
(Monday, April 8, 2024) 15:52

TEHRAN (NIPNA) -- The CEO of the National Iranian Gas Company (NIGC) announced efforts to maximize gas supply to petrochemical units, revealing a 7% growth in gas allocation to these units.

Speaking among CEOs of petrochemical companies, Majid Chegeni, the NIGC CEO, stated, "In total, during 1402 (Iranian calendar year that ended on March 20), we achieved a 7% growth in supplying 24.4 million cubic meters of gas to petrochemical units, compared to 22.8 million cubic meters in 1401."

"I began my career in the oil industry with petrochemicals, considering myself part of the larger petrochemical family, familiar with its concerns and challenges," Chegeni added at the "Specialized Meeting of Senior Managers in the Petrochemical Industry with the Aim of Achieving a Production Surge with People's Participation."

He emphasized the incomparability of the petrochemical industry with any other, stating it is a leading industry, embodying this year's slogan coined by the Supreme Leader as "the year of production surge with people's participation."

The Deputy Petroleum Minister highlighted the definite advantage of the petrochemical industry in the country's economic development, stressing the need for optimal utilization of this potential through proper planning and policymaking.

However, he acknowledged shortcomings in achieving the desired value chain completion, attributing some blame to governmental sectors for failing to create necessary attractiveness for investment in the petrochemical value chain.

Chegeni acknowledged the petrochemicals' concern regarding gas supply restrictions in the cold season, citing that despite efforts, limitations in gas supply to industries and petrochemicals are sometimes inevitable due to high gas consumption in non-industrial sectors during cold periods.

"In the winter peak, more than 70% of injected gas into the network is consumed in non-industrial sectors, leaving us to distribute less than 30% among industries, power plants, petrochemicals, etc.," he explained.

Responding to criticism regarding the gas feedstock formula, Chegeni stated that discussions on changing the petrochemicals' gas feedstock formula and eliminating or modifying European indices fall under the purview of the Ministry of Petroleum's planning deputy, which he plans to address.

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