Iran's Gas Condensate Exports Decreased by 23% in the First Five Months of This Year

Iran's gas condensate exports in the first five months of this year reached $2.1 billion, a 23% decrease compared to the same period last year. According to a report published by the Mehr News Agency based on Iranian customs statistics, gas condensate exports during this five-month period amounted to 4.167 million tons, which represents a 41% decrease in weight compared to the same five months last year. This amount of gas condensate exports accounted for 9% by weight and 11.23% by value of Iran's total exports in the first five months of this year. The main reason for this decrease could be linked to South Korea's decision to halt imports of oil and gas condensates from Iran under the pressure of U.S. sanctions. In recent months, news agencies reported that South Korea's imports of oil and gas condensates from Iran had dropped to zero, with South Korea previously being a customer for 60% of Iran's gas condensate exports. In the first five months of 2017, gas condensate exports amounted to $2.8 billion, which fell to $2.169 billion in the first five months of this year. The amount of gas condensate exports from Iran in the first five months two years ago, in 2016, was reported to be over $3 billion, indicating a continuous decline in Iran's gas condensate exports. Reuters reported in April of this year that one of South Korea's refineries purchased a shipment of Norwegian gas condensate, which was republished in Iranian media as a warning signal for Iran's gas condensate exports under the pressure of U.S. sanctions. Meanwhile, reports from this news agency indicate a continuous decline in Iran's oil exports over the past three months. In recent years, Iran's Ministry of Oil has attempted to compensate for the decline in gas condensate exports by investing in and constructing refineries that utilize gas condensates as feedstock, converting them into other oil products. The Persian Gulf Star Refinery is Iran's largest investment for utilizing gas condensates and converting them into gasoline, designed in four phases with a total capacity of 480,000 barrels of gas condensate per day. The refinery's design includes a daily production capacity of 36 million liters of gasoline. So far, two phases of this refinery have been inaugurated with a daily production of 24 million liters of gasoline, and the third phase is expected to come online by the end of this year. Another Iranian refinery project for utilizing gas condensates, the Siraf Refinery, has been suspended due to issues related to sanctions and lack of investors. Following the U.S. withdrawal from the JCPOA, sanctions against Iran have been implemented in two phases, with the second phase, which includes sanctions in the oil and gas sector, coming into effect on November 3. However, U.S. pressure on buyers of Iranian oil, gas, and gas condensates has led to a decrease in the export of these items. U.S. officials are trying to persuade major buyers of Iranian oil, gas, and gas condensates, such as China, India, Japan, and South Korea, to stop or at least reduce their imports from Iran.