Iran has gone on a spree of negotiations with the Africans and the Europeans besides the Asians for sales of its liquefied petroleum gas (LPG), an official said on Monday.
Mohammad Ali Barati, the managing director of the Iranian Gas Commercial Company (IGCC), said LPG trade is limited to Asia for now because of US-led sanctions but talks are underway to find new clients.
“At present, the Iranian liquefied petroleum gas is exported to China, India, Pakistan, Iraq and some other neighboring countries by IGCC,” he said.
Barati said negotiations are underway for further LPG supplies to India as well as Turkey.
“One of the goals is to take our LPG to Europe but our country’s situation is exceptional. After the sanctions are removed, our connection with the Europeans will increase and we will naturally find new customers,” he said.
At the moment, LPG shipment to the European Union is non-existent but “indirect” negotiations are being conducted to start exports to Spain, Barati added.
According to the official, Iran also sees a “good market” for its LPG in Africa but existing dockyards in the continent can only handle small vessels while Iranian ships mostly carry large liftings.
However, the Iranian LPG has already found its way into Kenya’s main port of Mombasa, he said.
“We are currently in talks for big ships to transfer their cargo to smaller vessels on the high seas in order to export to Mozambique, Ghana and West African countries,” Barati added.
Iran reaps nearly $1 billion a year from exports of sulfur and liquefied petroleum gas, according to state officials.
China is the main importer of Iran’s LPG and sulfur. The country resumed its purchase of the Iranian LPG in June 2013 after a one-year break.
LPG produces the cleanest emissions of all oil-based products, with a low carbon dioxide output. It is used in commercial business, in industry, transportation, farming, power generation, cooking and heating.