National Iran Oil Company (NIOC) will cut South Pars condensate production in Q2 2018 by 25%, Platts reported.
The state-owned company will now produce 350,000 b/d between April and June 2018.
The use of condensate as a feedstock for the Persian Gulf Star refinery has increased, an NIOC official said: “Because of the second phase of Persian Gulf Star, we have to deduct from our exports.”
Iran initiated the second phase of the Persian Gulf Star refinery, adding 120,000 b/d to the already existing 120,000 b/d. South Pars condensate is the main feedstock for the refinery.
On a Free-on-Board (FOB) basis, Platts front-month Dubai crude assessments saw the premium of the Q2 cargoes at around $3.25-$3.40/b, compared to $2.50/b for Q1.
Iranian exports of crude to South Korea, a major buyer of South Pars condensate, fell by 32.1% to 9.088 mb year-on-year in February.
This marks the fourth consecutive decline since November 2017 when imports of the condensate dropped year-on-year by 26.8% to 10.37 mb.