Liquefied Petroleum Gas is the two hydrocarbon gases of butane and propane, or a combination thereof, that are kept in a liquid state. Usually small amounts of compounds such as propylene and butylene are also present in liquefied petroleum gas. LPG is mostly used for heating applications and as a fuel for vehicles. It is also used in the manufacture of sprays and as a cooling gas in refrigeration appliances such as refrigerators and freezers.

LPG is a by-product of natural gas refining and crude oil refining. The calorific value of liquefied petroleum gas is 46.1 megajoules / kg, which is higher than gasoline and fuel oil and produces higher energy in equal weight, but its calorific value is less in equal volume because it is a gas and has a lower density. Each liter of liquefied petroleum gas weighs 500 to 580 grams and each liter of gasoline weighs 710 to 770 grams. This gas turns into a liquid at a temperature of 21 degrees Celsius under a maximum pressure of 8 kg per square centimeter; And at the time of production, it has no color, smell or even taste, for added safety, sulfur compounds called mercaptan (which includes ethyl mercaptan and methyl mercaptan) are added.

LPG should not be confused with LPG (liquefied natural gas). LNG is actually natural gas (mainly methane and ethane) that liquefies for easier and more cost-effective transportation. CNG is also a natural gas that is compressed to take up less space.

Uses of LPG

LPG is used in many places where it is not possible to use other sources because it is easily transportable.

Hundreds of millions of people now use LPG and depend on it for thousands of applications in commercial, industrial, transportation, agricultural, power generation, cooking, heating and recreational purposes.

LPG has a wide range of applications, mainly for cylinders in various markets as an efficient fuel container in agriculture, recreation, hospitality, industry, construction, sailing and fishing. It can be used as cooking fuel, central heating and water heating, and is a particularly cost-effective and efficient way to heat off-grid homes.

The mystery of 600,000 billion Rials of liquefied gas

According to official statistics, every year at least 3 million tons of Iranian LPG worth 600,000 billion rials are wasted and burned in pipelines.

Liquefied petroleum gas (LPG) is a combination of propane and butane hydrocarbons that is used as fuel (heating and automobile) and as feed for petrochemical plants. At present, Iranian liquefied natural gas is produced from oil refineries, gas complexes such as the South Pars complex and petrochemical plants.

LPG produced in oil refineries and the South Pars complex (and other gas complexes) belongs to the National Company for Refining and Distribution of Petroleum Products and the National Iranian Gas Company, respectively. As a result of the multiplicity of companies in charge of this product, the policy in the field of LPG in the country has not been done as a unit and we are witnessing an island approach to LPG governance.

The study of the situation of liquefied natural gas (LPG) in Iran shows that determining the task of consuming this hydrocarbon is one of the priorities of the Ministry of Oil of the 13th government of Iran. This issue has been discussed in the shadow of the negligence of the Ministry of Oil, with the entry of MPs in the Budget Law 1400 and Budget Bill 1401.

Export of Iranian LPG

At present, the total production of LPG in Iran’s oil refineries is 2.4 million tons per year, of which 1.8 million tons are used in Iran for domestic consumption in areas without gas piping and the rest is exported.

4 million tons of LPG exported from Iran are also sold at lower prices than the world price. According to Platts, Iranian LPG shipments with significant discounts of more than $ 100 per ton compared to the Saudi contract price have been attractive to foreign buyers. In the previous round of Western sanctions in 2012, foreign buyers bought Iranian LPG at a discount of $ 40 to $ 50 per ton.

This information about the export figures of Iran LPG is very true, for example, according to the sales documents of petroleum products of the Ministry of Oil of Iran, the average price of Saudi LPG in December this year was $ 770 per ton, while exports of Iranian LPG were $ 670 per ton sold.

Kian Group International Company is the largest supplier and exporter of petroleum products in Turkey, which with the cooperation of its representative in Iran, Kian Petroleum Company, is able to supply various oil, mineral and steel products directly from the doors of Iranian factories.

Revenue from Iranian LPG exports

It is interesting to know that all South Pars LPG export revenues are divided between the National Gas Company and the National Iranian Oil Company, but the National Iranian Oil Refining and Distribution Company has a 14.5 percent share of the LPG export revenues produced in the country’s oil refineries.

In other words, incorrect and complicated financial relations in the settlement of Iranian oil companies has finally reached a balance in such a way that the National Iranian Gas Company, as a 100% beneficiary of liquefied natural gas, sees the life of its projects in LPG exports. The conventional 14.5 percent share of the Ministry of Petroleum in the revenue of Iranian petroleum products and products, with the exception of the company’s share of LPG exports, is 100 percent.

Organizing the LPG market in Iran

In general, the desired situation can be defined as follows:



Kian International Group Company is the largest exporter of LPG in Iran and the representative of Kian Petroleum Company in Iran to supply and supply all products of the Energy Exchange and Iran Commodity Exchange for various uses of industries and by selling products of the Energy Exchange and Iran. Commodity Exchange in Ring International, while meeting the needs of customers in foreign markets, has provided the possibility of offering a variety of steel products at competitive prices to domestic and foreign markets, which shows the high potential of the company in the field of steel.

For more information on the latest and latest supply announcements, contact our sales experts in Iran and Turkey.

Iran Office: 00983535227500 – 00989120525658

Turkey Office: 00905387445869

Email: export@kiangroup.com

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