Iran’s July gas (LPG) exports reached close to 400,000 metric tons (mt), the highest monthly tonnage in 2017.
China and Indonesia were the expanding markets for Iran, providing much of the boost, Platts reported.
Iran still does not have a big capacity for LPG exports, but in early July it signed an agreement with the world giant Total for the development of its offshore gas fields, north of Qatar’s well-developed offshore reserves.
Overall, Iran’s LPG exports are still not a big source of income.
According to Iran’s Customs data, the country earned about $2 billion from LPG exports from March 2016 to March 2017.
Even though Iran lists the LPG as a non-oil export, it constituted just %4.5 of the sector. The country’s petrochemical exports are much higher.
LPG prices have declined on the world market. Currently, one mt sells for about $450. But actual price for a given country’s export depends on the specifics of its bilateral contracts with buyers.
But with relatively low oil prices, any substantial increase in LPG exports can help boost Iran’s income form fossil fuels.