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June 2017, No. 84


Cover Story

 

A Dream Come True

Iran Inaugurates Mega Gas Projects Worth $20 bn


Iran’s media reported that the development of South Pars phases as well as the Oil Layer and the petrochemical projects that were inaugurated by Rouhani had taken an investment of $20 billion.


Iran has officially inaugurated several mega projects in its natural gas hub of South Pars – projects that can put the country in the lead over production from a giant field that it shares with Qatar.  

The projects included South Pars Phases 17 and 18, Phase 19, as well as Phases 21 and 22. They were inaugurated by Iran’s President Hassan Rouhani. 

The phases increased Iran’s total gas production by 150 million cubic meters per day (mcm/d) thus bringing the country’s overall gas output to as high as 540 mcm/d. The figure was an increase of above 100 percent from 250 mcm/d recorded in 2013 when Rouhani assumed office.

The inauguration of the phases also increased Iran’s production of condensates by 200,000 barrels per day. Other key products include ethane and liquefied petroleum gas (LPG) which respectively increased by 3 million tons per day (mt/d) with the inauguration of the phases.    

Rouhani further inaugurated production of 35,000 barrels per day (bpd) of oil from an exceptional oil field which is located in South Pars gas hub – a field named South Pars Oil Layer. 

Iran’s President described the development of the Oil Layer “a dream come true”.  He further expressed hope that production from the field would increase to as high as 60,000 bpd in the near future.  

Other projects that were put on stream included four petrochemical projects that were developed by private companies in South Pars. 

Iran’s media reported that the development of South Pars phases as well as the Oil Layer and the petrochemical projects that were inaugurated by Rouhani had taken an investment of $20 billion. 

It is estimated that production from every two phases of South Pars would generate $3.5-$4 billion for Iran. Reports further said that the total investments in these phases would be reimbursed within less than two years.  

The Iranian President said the inauguration of the projects had marked a historic day for the country’s oil industry.

Rouhani also emphasized that the projects were manifestations of Resistance Economy that the country was strongly pursuing for years, specifically after sanctions implemented against it since 2011. 

“We saw how the Iranian nation stood against the plots and the sanctions devised by the enemies,” he said at the inauguration ceremony of the projects. Today, he added, we are witnessing the results of the resistance and patience of the Iranian nation.  

South Pars – called the North Dome field in Qatar – is located in the Persian Gulf and is the world’s biggest gas field with estimated reserves of 51 trillion cubic meters of natural gas and some 50 billion barrels of condensates.  Experts believe that the field has more recoverable reserves than all other fields combined. 

Iran has so far developed 12 phases in the field – phases 1, 2&3, 4&5, 6-8, 9&10, 15&16.  The remaining phases are 11, 12, 13, 14 and 22-24. 

Industrial Prowess

Oil Minister Bijan Namdar Zangeneh said Iran’s industrial breakthroughs in the supergiant South Pars gas field show the world the country’s resistance and industrial might.

Addressing a packed press conference (April 16) ahead of the historic inauguration of gas and petrochemical mega projects in Assalouyeh, southern Iran, the minister said launching of the projects is a national honor for Iran and sends the world this message that “Iran is a powerful country both technically and industrially because it could carry out these projects under the heavy sanctions.”

Inauguration of such huge projects on a single day is an unprecedented event in the history of Iran, said Zangeneh.

“No such thing has been seen even in other industries in Iran, and therefore this is a huge honor for the Islamic Revolution and belongs to the people of Iran,” he noted.

The projects include 6 phase development projects at South Pars gas field that will add 170 mcm/d of sour gas and 150 mcm/d of sweet gas to the field’s daily production capacity.

Besides, each phase will supply 0.5mt/d of ethane, 0.5mt/d liquefied petroleum gas (LPG) and something between 35,000 to 40,000 b/d of natural gas condensates (ultralight crude oil).

Yet, the country will also start up four petrochemical projects: Phase II of Kavian Petrochemical Plant, Takht-e Jamshid Pars Petrochemical Plant, Entekhab Group Polystyrene Unit and MEG unit of Morvarid Petrochemical Plant.

Phase III of Pardis Petrochemical Plant along with Kaveh Methanol Project is also nearly ready for inauguration that will be launched in a matter of a week or more, added the official. 

$1.5 bn from Exports

Director of the onshore refining facility of South Pars Phase 19 (SP. 19) project at Petropars Company said the phase has sold $1.5 bn worth of natural gas and condensates since March 2016.

Hossein Pilehchian Langroudi said acceleration of the phase’s recovery was signified by its proximity to the border frontiers with Qatar in the Persian Gulf.

He said the project came online at a relatively shorter period of time at lower costs, adding SP. 19 was Petropars’ first turnkey project in which deals with 900 developers sealed for completion of the project.

Iranian companies had 69% share in completion of the project, he added, saying that most of the items required for the project were procured by domestic suppliers.

Phase 19 is developed for the production of 56 mcm/d of sour gas to be transformed into 50 mcm/d of sweet gas, 550 tons a day of ethane, 2,000 tons a day of propane, 1,200 tons a day of butane, 80,000 b/d of gas condensate and 400 tons a day of sulfur.

 

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