Iran's Gas, Petrochemical Export Earnings Surge Amid Higher Prices

Iranian gas export revenues surged by more than 250% in the year to March, while earnings from petrochemical exports doubled, Oil Minister Javad Owji said on Wednesday.

He said overall energy export earnings, including crude, rose by 2.5 times but he only gave a breakdown for gas and petrochemicals. Iran does not release figures related to oil exports.

The increase in revenue was partly due to more exports and because Iran managed to collect more of the proceeds from exports despite US sanctions, the minister said.

But energy prices have also increased from the second half of 2021 and Iran’s has been exporting more oil to China because of a reluctance on the part of the Biden Administration to enforce sanctions.

"Through various methods, our government has collected all the revenues from its exports of oil, gas, gas condensate and oil products," Owji said.

Iran’s ability to export natural gas is limited because of high domestic demand and decreasing production. Officials have said that the country needs up to $50 billion in investment to prevent falling output at its gas fields.

Gas export revenues rose to $4.6 billion from $1.27 billion last year, and revenues from petrochemical products exports doubled to $12 billion, the minister said.

US sanctions imposed in 2018 seriously reduced Iran’s crude oil exports and cut its revenues. Banking sanction also made it hard to repatriate the proceeds.