02-04-04

Iran is acquiring 51 new tankers, valued at $ 3.16 bn, to meet demand for energy transportation by 2010, said a top official.

The National Iranian Tanker Company (NITC) has also set up two offshore companies in Cyprus to facilitate foreign participation in the management of the new vessels which could also fly foreign flags once registered in Cyprus.

These include 17 tankers, valued at $ 577 mm, that are in various stages of construction, as well as 22 planned new buildings, estimated around $ 550 mm.

"To meet the demands of energy and chemical transportation, we will also need 12 additional large LNG carriers, each valued at $ 170 mm. The total value of the 12 LNG carriers will be around $ 2.04 bn," Mohammed Souri, NITC chairman and managing director, told.

"Our total investment in new buildings will be about $ 3.16 bn up to 2010. However, we are encouraging foreign participation in the investment and management of some of these vessels."

NITC operates a tanker fleet of 29 vessels, including 15 VLCCs, 5 Suezmax and 5 Aframax ships, with a combined capacity of 7.5 mm dwt. The 17 vessels on order by NITC will have a combined capacity of 1.08 mm dwt.

The company is looking for joint ventures for the 22 chemical tankers and 12 LNG carriers. Souri said Iran will accept English law as a basis for foreign partnership in the management of the vessels through its Cyprus subsidiaries. Explaining NITC's decision to undertake such a huge order, Souri said exports of oil, gas and chemicals from the Gulf are increasing at a fast rate.

"Growth in our future production will be determined by the growth in the demand for oil, gas and petrochemicals in Asia, especially China and India," he said. "This year, petrochemicals exported by NITC vessels include 841,000 tons of ethylene and propylene, which will increase to 970,000 tons in 2007 and 1.91 mm tons by 2010."

Iran's petrochemical exports this year are expected to shoot up to 5.81 mm tons.
"This will reach 16.28 mm tons in 2007 and 24.75 mm by 2010. This translates to a vessel requirement of 47 this year, 116 by 2007 and 184 by 2010."

Iran's South Pars gas field, shared with Qatar, has 16 % of the world's natural gas reserves. Iran is developing the field in 20 phases, with contracts for 14 already awarded.

The first 5e phases will meet Iran's domestic demands, for which it has built a nationwide pipe-line network. The rest will be exported, mostly to India, China, the Far East and Europe. Once completed, the combined output of South Pars' 20 phases will be 211 mm tons, including 143 mm of natural gas, 40 mm of condensate, 8 mm of LPG and 20 mm of sulphur. Iran's annual oil production is about 200 mm tons (4 mm bpd).

"By 2010, gas will outperform oil output in Iran. Our requirement for new vessels is based on these developments. South Pars alone will require 34 new LNG vessels."

Source: Al Nisr Publishing LLC