Iran May Cut Gasoline Imports by 75%, IEA Says

Bloomberg


Iran, facing international sanctions over its nuclear energy plans, is likely to reduce gasoline imports by 75 percent by 2015 as it expands refining capacity and tackles subsidies, the International Energy Agency said.
Iran’s gasoline imports will shrink to 100,000 barrels a day in five years from 400,000 in 2009, the IEA said today in its latest monthly report.
Refinery expansion, and upgrading as well as building of new reprocessing units are likely to increase gasoline output, the IEA said. Iran will add 818,000 barrels a day of upgrading and desulfurization capacity, it said. Crude distillation output will gain by 101,000 barrels a day from 1.76 million barrels, according to the report.
“Attempts to tackle fuel subsidies and ultimately lower demand do appear to be moving forward with the intention to fully eliminate subsidies by 2011,” the Paris-based adviser said. “This situation has led the government to ration gasoline and to develop alternatives, such as natural gas vehicles.”
Iran, the second largest oil producer in the Middle East, relies on imports for up to 40 percent of its gasoline needs as it lacks the refining capacity to meet domestic consumption.
“The limited number of traders willing to supply Iran with gasoline and jet fuel is driving up the cost of fuel, casting doubt on the republic’s ability to source the full volumes required,” the IEA said.
Chinese traders Unipec and Chinaoil, the international trading unit of PetroChina Co Ltd, and Turkish refiner, Tupras Turkiye Petrol Rafine have increased sales to Iran to fill the “void,” as many international companies withdrew, the IEA said. Total SA, BP Plc, Reliance Industries Ltd. and Glencore International AG are among sellers to have suspended shipments of refined products to Iran, it said.


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To contact the reporter on this story: Brian Murphy in London at bmurphy74@bloomberg.net


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