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Iran Energy Exchange to offer new oil products

29 January 2020 [17:35] - TODAY.AZ

By Azernews


By Abdul Kerimkhanov

Iran Energy Exchange (IRENEX) company will offer two new oil products, namely Propylene and Normal Hexane, for the first time next week, local media reported, quoting the managing director of IRENEX.

“After the offerings of propylene and normal hexane products at IRENEX, the country’s demand will be met through domestic resources,” Seyed Ali Hosseini said.

Note that IRENEX consists of three markets - physical, derivatives and subsidiary.

Hosseini noted that Shazand’s Emam Khomeini Oil Refinery which is the current supplier of the mentioned products has committed to offering 80 percent of its annual output, which is 40,000 tons and 60,000 tons of propylene and normal hexane, respectively, at IRENEX on a monthly basis.

Hosseini explained that normal hexane is used as a solvent in the petrochemical and lubrication industries and propylene is commonly used as a feedstock for petrochemical plants.

In the past few months, the National Iranian Oil Company (NIOC) and its subsidiaries have been constantly offering various oil products at IRENEX.

NIOC has managed to sell millions of dollars of oil products via IRENEX over the past two years.

In May 2019, NIOC decided to halt the offering of oil and gas condensate at IRENEX to prepare new guidelines for the later offerings.

Accordingly, for the 10th round of light crude oil offering, which was the third round of offerings in the new Iranian calendar year (started on March 21) NIOC decided to offer two million barrels of light crude instead of the previous one million barrels.

The least amount of purchase was also reduced to 10,000 barrels from the previous 35,000 barrels.

However, clearly even those adjustments had some flaws and were not enough to attract buyers, so NIOC decided to once again make new changes in its regulations.

Removing some of the barriers regarding approval of the bidders and strict pre-payment rules, the new regulations are aimed at encouraging domestic buyers for more engagement in the country’s oil and condensate trades.

Offering crude oil and gas condensate at IRENEX is to materialize the objectives of “Resistance Economy” for diversifying methods of selling these products and benefitting from the capabilities of private sector for exporting them.

National Iranian Oil Company offered light crude oil at IRENEX first on October 28, 2018.

Offering gas condensate at IRENEX came after the successful offering of crude oil at this market. And then the turn came to heavy crude. Offering heavy crude at IRENEX came after NIOC offered light crude at this stock market in eight rounds.

Now, after one year, the released reports show that sales of these products has not been so successful and welcomed.



URL: http://www.today.az/news/regions/190506.html

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