Iranian Bushehr NPP Helps Save $2.5Bln For National Oil Production - Atomic Agency

Iran's first nuclear power plant in Bushehr, a project overseen by Russia, has so far saved at least $2.5 billion during its operation, funds that will be used in the country's oil production sector, Atomic Energy Organization of Iran (AEOI) said in its half-year report for 2018.

MOSCOW (UrduPoint News / Sputnik - 06th November, 2018) Iran's first nuclear power plant in Bushehr, a project overseen by Russia, has so far saved at least $2.5 billion during its operation, funds that will be used in the country's oil production sector, Atomic Energy Organization of Iran (AEOI) said in its half-year report for 2018.

"This power plant unit, in line with the objectives of saving fossil fuels and consequently oil-gas saving, was able to save during its 7 years operation, equivalent of total [50.5 million] oil barrels or 7676 million cubic meter of natural gas, calculable on the basis of the crude oil and gas market prices, as well as billions of Dollar savings in the national fossil fuel exploitation. In this way, even assuming the market average of 50 dollar price for an oil barrel, an equivalent of [2.5 billion] Dollars saving was performed," the report said.

Oil market turbulence caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016, causing hardship for oil exporters and placing a number of global oil producers at risk of bankruptcy. Since then, prices have increased. In 2017, the Organization of the Petroleum Exporting Countries' reference basket of crudes exceeded $52 per barrel.

"In addition to this, the electricity production in the Bushehr power plant since the start of its operation collectively has resulted in the reduction of the diffusion of around 29 million tons of various kinds of environmental pollutant gases," the report added.

Bushehr is Iran's first nuclear power plant. Construction for the plant started in 1975 but was suspended amid Iran's Islamic revolution of 1978-1979 and the West's sanctions on Tehran, Germany, responsible for the Bushehr's construction at the time, had joined the United States in the restrictive measures.

Iran's deal with Russia on the first stage of the Bushehr project, Bushehr 1, goes back to 1992. The nuclear power plant with its single 1,000-megawatt light water reactor was connected to the national electric grid in 2011 and reached full capacity the following year.

In November 2014, Russia and Iran signed an agreement to build the second and third reactors for the Bushehr NPP. The launching ceremony took place on September 10, 2016. The combined capacity of the two new units will be 2,100 megawatt. The second unit is planned to completed by 2024, and the third one by 2026. The project's general contractor is Atomstroyexport JSC and the general designer is Atomenergoproekt both are subsidiaries of Russian state corporation Rosatom.