IOPTC Handles 123bn Liters Oil and Oil Products in One Year

TEHRAN (Shana) -- The Iranian Oil Pipelines and Telecommunication Company (IOPTC) is the link connecting Iran's upstream and downstream oil sectors. In other words, IOPTC receives crude oil from production points for delivery to oil refineries prior to providing end users with refined petroleum products.

 

In the Iranian calendar year to March 20, IOPTC handled the delivery of about 123 billion liters of petroleum products and crude oil through its network of pipeline across the country. Crude oil accounted for 66 billion liters of the total amount. Last calendar year's delivery of IOPTC was 2.5% up year-on-year.

To know more about IOPTC and its activities in the country, "Iran Petroleum" has conducted an interview with its CEO Abbas Ali Jafari-Nasab.

The existence of 14,000 kilometers of oil and petroleum products pipeline, sections of which are half-century-old now, poses a risk to the transfer of petroleum products across Iran. What measures has IOPTC taken so far in order to repair, renovate and develop its facilities and installations?

Pursuant to our plans to preserve our transfer capacity, we have a large number of repair and renovation projects on the agenda every year. As far as rotary machinery like turbines, compressors, pumps and electromotors are concerned we have regular annual plans for their overhaul with maximum reliance on domestic capabilities.

In which sector does IOPTC need foreign investment and technology and in which sector has it reached self-sufficiency over recent years?

The company operates more than 165 gas turbines designed in 16 models from a variety of foreign manufacturers. Due to international restrictions imposed on Iran, our planning for self-sufficiency in the manufacturing of major parts and equipment of turbines was put on the agenda 20 years ago. As a result, most of spare parts of these turbines are supplied by domestic manufacturers and the remaining portion is purchased directly from the foreign manufacturers of these turbines. As far as US-made turbines are concerned, we have been facing more restrictions. However, planning has been made for self-sufficiency and some Iranian companies are now able to manufacture spare parts for American turbines within the range of 3MW, electrical motors, switch gears and many other commodities. IOPTC has already informed all manufacturers of the gas turbines that they should try their best for maximum cooperation with Iranian manufacturers and workshops in order to maintain their constant presence in Iran's oil equipment market. They can also form partnership with Iranian companies. We have now such relations with oil equipment service companies like Germany's MAN Turbo AG which is currently setting up a plant in the city of Parand. Regarding cooperation with foreign companies, we currently need technology and intelligent pigging projects. Prior to the imposition of sanctions, European companies were working with us, but after the sanctions were toughened such cooperation was reduced. However, after the implementation of the JCPOA (Iran's nuclear deal with six world powers), other European companies like German-Dutch Rosen have expressed readiness for cooperation with us. We are currently cooperating with more than 15 foreign companies on purchasing equipment required for pipeline industry.

Would you please tell us more about intelligent pigging?

Intelligent pigging of pipelines is an activity aimed at inline inspection of the pipelines. So far, all ageing oil and petroleum product pipelines in the country have undergone intelligent pigging once or twice. Documents for tenders to be offered for 3,000 to 4,000 kilometers of pipeline would be ready soon. According to the condition set by Iran's Petroleum Ministry, foreign companies willing to bid for these projects should cooperate with Iranian companies and transfer the relevant technology to them.

Recently a project was jointly operated by a British company and IOPTC regarding leak detection from oil pipelines. Could you tell us about the project?

Last year, we signed an agreement with Atmos International for the experimental installation of an automatic leak detection system on 300 kilometers of the oil pipeline in northeastern Iran, which will become operational soon. The foreign company has already been present in Iran and has a good background here. In future, leak detection systems will be installed on the new pipeline projects designed for the transfer of oil and petroleum products. Apart from the category of these leak detection systems, we are able to examine fallout from illegal branching or leakage through monitoring of operations.

Has IOPTC estimated costs of renovation and overhaul of decrepit oil and petroleum product pipelines in Iran?

Crude oil and petroleum product pipelines in Iran are on average 35 years old; however, it does not mean that these pipelines have not been effective as there are pipelines still working effectively after 60 years. Today, by operating pipeline rehabilitation projects and applying new coating we can enhance the lifecycle of pipelines. Of course we need more financial resources in order to accelerate these projects.

You highlighted financial restrictions. To what extent do we need foreign investment?

Attracting foreign investment could prove effective in the sectors of renovation and rebuilding of pipelines and equipment. For instance, for a €66 million project for electrical and gas-fired pumping stations, we will save 160 mcm/y of gas. To that effect, negotiations have been held with several British, German, Russian and Chinese companies.

Would you please tell us about Iran's oil swap project?

Oil swap has many political and economic advantages for Iran and its neighbors. We receive oil from the Caspian Sea via the Neka-Sari-Rey pipeline and in return we deliver as much crude oil to buyers of Caspian Sea littoral states' oil in Kharg Island in the south of Iran. However, swap operations were halted via the pipeline for years due to a variety of reasons. However, since last year it has resumed on an intermittent basis. Meantime, based on an agreement signed between Iran and Iraq, 60,000 b/d of crude oil is to be trucked from Kirkuk in the first phase, which would be transferred via pipeline to Naftshahr in the next phases. The oil will then go to TangehFanni before being delivered to Arak and Tehran oil refineries. Iran has already expressed readiness for the implementation of this agreement and has set up necessary infrastructure. We are now waiting for the delivery of oil from Iraq. Negotiations are under way with Iraq about the construction of a pipeline in southern Iraq for swap operations.

How many IOPTC telecom centers are currently active in Iran?

There are a total of 293 centers covering 186 oil transfer centers in the country. The systems of these centers have switched from analogue to digital and provide services to all sectors of petroleum industry. More than 80% of telecom equipment used in Iran's petroleum industry is fitted with cutting edge technology. Long-term plans have been made for equipping these centers with fiber optics in the future on some routes.

What are IOPTC future projects?

Upgrading firefighting systems in the Shahr-e Rey installations, replacement of 67 kilometers Marun-Isfahan pipeline, development of automatic leak detection systems, domestic design and manufacturing of machinery, implementation of pipeline replacement and repair projects and renovation of coating in all areas in order to lengthen the lifecycle of pipelines are among our future projects.

Using state-of-the-art technologies could bring about good progress in the IOPTC systems. Due to restrictions, we have increased our cooperation with domestic network.

 

Courtesy of Iran Petroleum

News ID 283293

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