India’s December oil imports from Iran were the highest in six months.
India, Iran’s biggest oil client after China, shipped in 208,300 bpd of oil and condensate in 2015 compared with 276,800 bpd in 2014, the data showed.
New Delhi’s imports of oil from Iran are expected to rise in the next fiscal year, beginning in April, when western sanctions are expected to be eased against Tehran.
Tehran was India’s seventh-biggest supplier of oil in the 2014/15 fiscal year, down from the No. 2 spot before sanctions.
Indian refiners, including Reliance Industries, have shown interest in raising imports from Iran, Mohsen Qamsari, director general for international affairs of the National Iranian Oil Company (NIOC).

‘Iran will suffer the least in case it cuts its trade ties with the UAE,’ Al-e Eshaq was quoted as saying by Tasnim News Agency. Nevertheless, there may be a certain problem but the volume of Iran’s imports from the UAE is not so high that it could become a specific issue for Tehran, he added.
Al-e Eshaq emphasized that Iran will replace the UAE with Oman if the trade relations between the two are severed. Another replacement will be Turkey, the official said, adding that several other trade points are also being considered.
‘Any move by the Persian Gulf littoral states to cut relations with Iran will lead to far larger costs for those states than they think,’ he added.
‘This is a psychological warfare that has become heated so quickly but will cool down just as quickly.’
The UAE has recalled its ambassador from Iran and reduced relations to the level of chargé d’affaires. This followed the deterioration of relations between Tehran and Riyadh over angry protests in Iran against the execution of top Shia cleric Nimr al-Nimr by the Saudi government.
Other countries that have followed Riyadh’s suit and cut relations with Iran include Sudan, Djibouti, Bahrain and Somalia, Press TV said.
The UAE is considered Iran’s fourth-largest trading partner. It recorded a surge in trade exchange with Iran to $17 billion in 2014 but remains lower than the record $23 billion set in 2011 before sanctions began to bite, according a report published last July.

A second deal concerns the construction of Tehran-Isfahan high-speed railway and a third the provision of 500 passenger train coaches.
Siemens has also agreed to provide training for the railway sector of Iran.
The German engineering powerhouse will in most of its projects be obliged to team up with Iranian companies. This will be meant to transfer know-how to the Iranian companies.
Iran’s Minister of Industries, Mines and Trade Mohammadreza Netmatzadeh said last May that the country wants to splurge up to $8 billion over the next six years to revamp and expand its railway network.
Netmatzadeh said there are plans to stretch out the nationwide railroad line to 25,000 kilometers by 2025 from under 15,000 kilometers now. He added that there was need for $1.5 billion of annual investment in the next six years as part of the country’s vision plan.
Last October, Iran signed an agreement with Russia worth €1.2 billion to electrify a train line, linking north-central Iran to the northeastern border with Turkmenistan.
The agreement signed between Russian Railways and the Islamic Republic of Iran Railways envisages constructing power stations and overhead power lines along the Garmsar-Sari-Gorgan-Inche Burun route in Iran.
Officials said at the time that the project will be financed by the Russian government and will be implemented in 36 months, which includes manufacturing all electric locomotives inside Iran, electrifying 495 kilometers of railway and building 32 stations and 95 tunnels.

Kamal Kharrazi, a former foreign minister and the head of the External Relations Council of Iran (ERCI), told an expert panel in Tehran on Friday that the country will need to give more weight to exporting electricity produced from natural gas rather than the gas, itself.
Kharrazi said electricity will have a greater added value over natural gas, suggesting that exporting electricity will lead to larger returns to Iran in terms of economic gains.
He further said that Iran’s gas exports are currently at lower levels, adding that this is because Iran is production of the strategic fuel is low.
Kharrazi said Iran should purchase the natural gas supplies of other countries including Turkmenistan and re-export them. This, he emphasized, is a policy that will bring Iran major economic and strategic gains in the long term.
Iran is the leading producer of electricity in the Middle East and 15th top producer in the world. The country currently exports electricity to Turkey, Armenia, Turkmenistan, Azerbaijan (including the Nakhchivan Autonomous Republic), Pakistan, Afghanistan and Iraq.
Iran’s Energy Ministry announced in November that the country will be able to import the technology to transform conventional power plants to combined-cycle plants that consume natural gas to produce electricity after the removal of the sanctions.
Combined-cycle plants consume one-20th of the energy needed by conventional plants. Such plants use both gas and steam turbines to produce up to 50 percent more electricity than the traditional simple-cycle plant, the Ministry announced as reported by the media.
Iran’s nominal power generation capacity stands at around 75,000 megawatts (MW) and plans to increase this by 5,000 MW annually to reach 120,000 MW by 2025.

Azizollah Ramezani, the director for international affairs of the National Iranian Gas Company (NIGC), said Iran can easily increase its current natural gas production to new highs once it obtains the technology as well as the required investment. Both are currently off limits to Iran due to the existing regime of sanctions.
“The United States is trying to export liquefied natural gas (LNG) to Europe to reduce its dependence on Russian supplies,” Ramezani has been quoted as saying by IRNA.
Iran should also try to have a share of the European gas market, he added.
“Some claim that it is not economical for Iran to export its natural gas to Europe, but this is not true.”
The official further said that the current declines in oil prices have benefited the gas market and added to the advantages of Iran’s gas export plans.
“Russia is currently exporting natural gas to Europe through a 3,000-kilometer pipeline,” Ramezani said.
Iran can also export its gas to Europe through a similar pipeline scheme, he added.
The country’s huge natural gas reserves had for years made it a prime source for supplying future exports to Europe.
Accordingly, separate discussions were started with the country by a consortium named Nabucco as well as Switzerland’s EGL. However, the complications that later emerged – specifically the US-engineered sanctions – made both sideline Iran from their plans to pipe gas to Europe over the past few years.
The prospects that sanctions could be eventually removed in light of the recent diplomatic progress over the Iranian nuclear energy program once again put Iran in focus.
There has even been a new scheme raised by Azerbaijan to take Iran’s gas to Europe through the Trans Anatolian Natural Gas Pipeline (TANAP).
TANAP is projected to pump gas from Azerbaijan’s Shah Deniz 2 field in the Caspian Sea to Turkey and from there to Europe for a length of 1,850 kilometers

Morteza Allahdad, an Iranian economist, has been quoted by the media as saying that the government should revise its plans over imports of goods from China in light of the weakening yuan.
The devaluation of the yuan, he said, could expose Iran to unwelcome economic consequences.
“China is Iran’s top trade partner and the drop in the value of the yuan will definitely lead to an increase in exports of Chinese commodities to Iran,” Allahdad has been quoted as saying by Tasnim News Agency.
“Therefore, it is necessary that the government takes measures to change its policy toward importing goods from China for the short term.”
The Iranian economist further said that the world could soon witness a new wave of financial crisis as a result of the devaluation of the yuan.
The most susceptible to any new crisis from China, he said, will be producers of raw materials like oil which the world’s second largest economy uses for productions of its goods.
China is Iran’s biggest oil client in Asia and official figures show that the country imported an average of 500,000 barrels per day of Iran’s oil in 2015.
Based on figures provided by Iran’s Chamber of Commerce, the country imported a total of $6.7 billion worth of different products from China over a period of 10 months starting 21 March 2015. The imports mainly comprised industrial equipment, toys, different consumer items, computers, electronic parts, chemicals, and cereals.
This is while the exports from Iran to China – excluding crude oil – over the same period stood at $4.6 billion and the main items includes oil and gas products, minerals and metals, handicrafts and dried nuts.
The devaluation of the yuan could also undermine a reported plan by the two countries to use a currency swap mechanism to facilitate their mutual trade.
The mechanism – that was announced by Iran-China Chamber of Commerce – envisages payments in yuan to suppliers of commodities and services to Iran in return for the oil that Beijing purchases from Tehran, Iran’s media reported earlier this week.
Majid-Reza Hariri, the deputy head of Iran-China Joint Chamber of Commerce, has been quoted by the media as saying that the two countries are in early talks over the scheme, adding that they yet need to work out its related technicalities.

Concerning maritime transportation Akhundi said that Iran has a major role in the peace and security of the region adding that Iran has allocated lands for construction of new ports in Persian Gulf and Oman Sea shores.
He called for cooperation on maritime transportation, saying there are plenty of opportunities to cede projects for ports development in Iran.
Akhundi said that cooperation in banking system, civil aviation are offered to Denmark for joint investment.
Denmark Foreign Minister Kristian Jensen said that he held fruitful meetings with Iranian senior officials, especially President Rouhani, and that the negotiations will be a base to develop relations between the two countries.
Jensen said that representatives from 15 big Danish companies are accompanying Denmark delegation.
Referring to geographical distance between the two countries and importance of energy for Denmark, Jensen said that Denmark has 10 percent share in world transportation and is progressive in construction and equipment of large ports in the world, so by lifting the sanctions, there would be large amount of economic activities in Iran.
He said that Denmark is highly experienced in the field of multi-lateral transportation and that in meeting with Minister of Finance and Economic Affairs as well as President Rouhani, he noticed that Iranian government is so eager for economic reforms.
To develop shipping cooperation between Iran and Denmark, representatives of 12 Danish companies active in the field of maritime and ports are working with Iran Shipping Lines (IRISL) and consider ways for developing bilateral cooperation.
Trade between the two countries made noticeable growth in past years rising from 70 million dollars in year 2,000 to more than 225 million dollars in year 2011.
Trade balance between the two countries is negative and Denmark imported 12 million dollars from Iran a year, while it exported 213 million dollars goods and services to Iran.

During this period, Iran held numerous conferences to present the country’s investment opportunities and economic projects.

In the meantime, Iranian provinces with considerable economic potentials, such as South Khorasan Province, did not sit idle and were host to a large number of foreign delegations.

South Khorasan Province has numerous potentials in mining, industrial, agricultural and tourism sectors.

Chinese, German, Swiss, Polish and Afghan traders and businessmen were among the very first volunteers who expressed willingness for participation in the province’s projects.

Among the projects they showed enthusiasm for cooperation are the production of cast iron as well as launching a coal mine, which are currently underway in the province, and constructing a railroad in the east of the country which will pass through Zahedan (Sistan-Baluchestan Province) and Birjand (South Khorasan Province) on its route and connect to Mashhad (Khorasan Razavi Province) and Bafq (Yazd Province).

In an exclusive interview with Iran Daily, South Khorasan Governor-General Vajhollah Khedmatgozar expounded on the province’s untapped potentials and listed a number of its development projects.

IRAN DAILY: More than 40 types of minerals have been identified in the province. What are the plans to mind them?

KHEDMATGOZAR: A total of 53 types of minerals have been found in the province each with a proven reserve of 2.4 million tons. The province has 579 units which store 608.79 million tons of minerals per annum. Industry owners of have so far obtained 67 permits which allow them to produce 4.03 million tons of goods per year.

They include the production of magnesium oxide, fire-resistant products, Portland cement, magnesium ingot, coke and coal concentrate, tile and ceramic, sanitary ware, ornamental stones, marble and granite, industrial and mineral powders, mineral products and industrial soils.

Some 105 new permits have also been issued for establishing mining industrial units, which once operational, will increase the province’s mineral output by 10.07 million tons per annum.

Following the July 14 nuclear deal and the lifting of the sanctions, scores of foreign firms have lined up avidly to begin or resume cooperation with Iran. Could you please list the countries that have announced willingness to invest in the province’s projects?

China, Germany, Switzerland, Poland and Afghanistan are some of them. They are keen on funding the province’s mining, industrial, agricultural and energy projects.

A number of cooperation proposals have also been put forward for investment in breeding camel, constructing solar and wind power plants and processing minerals such as nickel.

Also, a number of expert meetings have been held to study foreign investors’ offers.

Has there been any foreign request for participation in the province’s national projects?

Foreign financiers have shown considerable interest for investing in the construction of the railroad in the east of the country which, once completed will reduce the distance between Central Asia and Chabahar by 345 kilometers.

A section of this railroad runs through South Khorasan Province. This project will bring greater prosperity in the region. The Iranian government is fully prepared to use foreign funds.

In addition, we have presented a number of projects in international conferences and exhibitions including the construction of the second band of the province’s highways, launching wastewater treatment plants and building industrial units to process minerals.

How much is the credit share of the province’s projects of the state budget bill for the year to mid-March 2017?

The total credit approved to be allocated to the province amounts to $77.62 million.

The province shares joint border with Afghanistan. Are there any plans to boost economic ties with the country?

The two sides’ officials have exchanged a large number of visits. Among the projects the two sides plan to implement are establishing four joint border markets, turning Yazdan border market into an official border checkpoint and building a clinic in Mahiroud border market.

What are your plans to improve the province’s tourism sector?

The province has amazing tourism potentials and capacities such as desert, beautiful villages, hot springs, sour water springs, caves and gardens. As stipulated in the Sixth Five-Year Economic Development Plan (2015-20), we are required to increase annual income from desert lands by establishing and improving the necessary infrastructures to this end.

This year (started mid-March 2015), the number of foreign tourists to the province grew significantly. We intend to invite a number of foreign ambassadors to South Khorasan to assure them of the province’s increased safety and the high quality of its tourism infrastructures.

“Considering the domestic capabilities of oil industry, it was decided that IOTS, rather than contractors, take charge of descaling operations for a one-million-barrel reservoir,” he underlined in a report carried by MNA.
The official noted that the scheme proposed by IOTS was innovative since the bottom sediments would resolve in crude oil and return to the country’s oil export cycle; “in addition, the operation was carried out at a high level in terms of safety, hygiene, safety and environment which can be applied to other tanks in Kharg oil terminal.”
“Raising the storage volume of crude oil marks one of the most important advantages of descaling tanks,” maintained Karami Moghadam adding “the increased storage volume alleviates the need to store oil in tankers on the sea.”
“Regular descaling of reservoirs will ultimately minimize the amount of country’s oil stored on water,” he reiterated.
Storage of crude oil in Kharg oil terminal has always been on the agenda due to its strategic importance in transfer or export of crude oil.
Several problems might disrupt the export process including adverse weather conditions, faults in pipelines and ship issues which all necessitate the existence and readiness of storage tanks.