TEHRAN, Nov 01 (Shana) — Deputy Minister of Petroleum for Petrochemical Affairs Marzieh Shahdaie says National Petrochemical Company (NPC) had been well aware of finalization of a new formula for pricing of ethane as feedstock to petrochemical complexes.
Shahdaie made the remark in an interview with reporters on the sidelines of her tour of Mahshahr Petrochemical Special Economic Zone in Khouzestan Province on Tuesday.
Shahdaie brushed off the claims of Managing Director of Jam Petrochemical Company Hossein Mir-Afzali that the NPC was not informed of the formula, adding that she and the NPC were fully aware of the issue.
Shahdaie is on a tour of the Mahshahr Petrochemical Special Economic Zone in Khouzestan Province to inspect petrochemical projects.
She had earlier said the Zone has suitable capacity for development and once necessary permissions are available, many volunteers will run the bid to contribute into projects in the zone.
Recently a new formula for pricing of gas feedstock to petrochemical complexes was finalized and approved by first vice president Eshaq Jahangiri.
The new prices of the light and sweet natural gas feed will be implemented from the beginning of the next Iranian year.
The formula is as below:
Feed price = 0.5 * price of domestic gas consumption in other sectors + 0.5 * price of gas traded at international gas hubs
According to the issued formula, the price of gas feed has been affected by both internal and worldwide gas prices. The first part of newly issued formula is linked to the domestic gas prices which is weighted average of total amount of internal consumption, export and import of natural gas.
The second part also affected by international gas prices and calculated as a weighted average of feed prices, traded at the natural gas trading hubs including Henry hub, Alberta, NBP and FFT. The higher and lower price belong to the markets of Europe and America respectively.
Source : Shana
