Iran lowers floating condensate stocks thanks to exports, domestic consumption: minister

Iran has considerably reduced its floating gas condensate inventory owing to exports and higher domestic consumption in recent months, draining growing stockpiles, the country's oil minister said Dec. 27.

"In the beginning of the fall, we had concerns about [piling] gas condensate," Javad Owji was quoted as per the state television website report. "A huge volume of produced gas condensate was floating in our ships on water. We took a good initiative and... raised exports of gas condensates to a record since May 2019... we used a big chunk of the on-water-floating gas condensates both domestically and for exports."

Iran has sold several cargoes of condensate to its political ally and fellow OPEC member Venezuela. The country has also increased its energy sales despite a US campaign to minimize it, the minister added.

"Fortunately, our exports including that of crude oil, gas condensates, natural gas, oil products and petrochemicals over the past nine months have reached a very acceptable figure and a few times higher than the last year's," Owji said without giving any number.

Iran has been subject to US sanctions on its energy sector since 2018, when the administration of former President Donald Trump withdrew from a nuclear deal with Tehran and re-imposed restrictions on the country's economy.

Oil revenues

Iran has been able to receive oil revenues "in a very good way", the minister added.

In October, a state report showed that the country's oil income in the six-month period ending Sept. 22 was double the amount recorded in the preceding Iranian financial year, which ended on March 20, 2021.

The country's current gas production, estimated at 840 million cubic meters per day, is behind schedule, the minister added.

"Based on the country's macro plans... 1.25 Bcm should have been injected into the national gas grid today but unfortunately, it's not the case due to lack of investment," he said.

Iran's South Pars gas field, shared with Qatar, reached a record production level of 705 Mcm/d, he said.

A gas swap contract with Turkmenistan to Azerbaijan will come into force "within two weeks", the minister added.