Iran stops transiting Turkmen LPG to boost exports

TEHRAN,Feb.20(MNA) - Iran has stopped transiting Liquefied Petroleum Gas (LPG) from Turkmenistan with the goal of increasing exports of domestically produced LPG to international markets. Iran has boosted the production of LPG in its refineries and has officially stopped transiting Turkmen LPG. “Under economic sanctions against the Islamic Republic, hiring foreign tankers for exporting liquefied gas has been made difficult, so exporting LPG to Iraq and Pakistan is economically justified in such a situation,” Hamid Hosseini, the member of the Iranian oil, gas, and petrochemical exporters told MNA. In August 2012, the Fars News Agency reported that the volume of LPG produced in different units across Iran has witnessed a 54 percent increase during the first four months of the current Iranian year (started on March 21). In August 2012, deputy oil minister Alireza Zeighami announced that Iran has launched a liquefied gas swap route in the Caspian Sea. The Mehr News Agency quoted Zeighami as saying that swapping other oil products, such as furnace oil, is currently underway with the Caspian Sea littoral states. Between 15,000-30,000 barrels of crude oil is swapped per day despite sanctions against the Islamic Republic's oil industry, the official noted. The EU banned importing Iranian crude oil and covering insurance for Iranian oil carrying tankers for European companies. EU insurance companies cover about 95 percent of tankers in the world.