and2017, mostly led by increases in Iran and very rarely in Qatar. Non-crude liquids production is mainly including of condensate production. The condensate production is mostly dependent on development and the richness of the gas reserve and in Asia the supply of condensate rallied considerably by developing the world's largest gas field, shared between Iran and Qatar. Hence, Qatar and Iran are the key condensate producers. Although the main source of condensate in both Qatar and Iran is the South Pars / North Dome field, these two countries are also producing condensate from their other gas field. The story of condensate production from this largest gas field is not very old and since then market players started to construct distillation units which are planned to use condensate as their feedstock in both Middle East and Asia Pacific. New petrochemical units were designed to use condensate as feedstock in order to have more flexibility. Furthermore, splitters were designed and constructed to split light hydrocarbons of condensate and thereupon, the market demand for gas condensate were expanded.

The South Pars / North Dome field is a natural gas condensate field located in the Persian Gulf. It is the world's largest gas field, stradles between Iran and Qatar. The Iranian part holds 18 billion barrels of condensate in place of which some 9 billion barrels are believed to be recoverable, while Qatari section believed to contain some 30 billion barrels of condensate in place and at least some 10 billion barrels of recoverable condensate. The South Pars Field was discovered in 1990 by NIOC. The Pars Oil and Gas Company, a subsidiary of NIOC, has jurisdiction over all South Pars-related projects. Gas production started from the field in December 2002 to produce 1bscf/d of wet gas. Gas is sent to shore via pipeline, and processed at Assaluyeh to produce condensate and LPG.

Total Qatari condensate production is now 850 thousand barrels per day and will be remained unchanged by the end of the decade. While in Iran production of S.P. condensate alone is planned to increase during the coming periods reaching 810 thousand barrels per day. The other types of condensate production in Iran are altogether around 150 thousand barrels per day. 

In Iran, the under development phases of S.P. gas field mainly consist of 24 phases. Generally each phase is planned to have nominal production of 40 thousand barrels per day. At the current situation, 15 phases are under operation and totally are producing 530 thousand barrels per day. Looking forward, total production of S.P. Condensate is expected to be around 650 thousand barrels through 18 phases during a year from now. Moreover, with the completion of all 24 phases of the S.P. refinery, total production is expected to be more than 810 thousand barrels per day. Hence Iran is exclusively going to absorb the new capacity of condensate demand in the area.

Condensate production from M.E. and outlook (kb/d)

On the demand side, condensate can be considered a base material, equivalent to crude for refining or feedstock in petrochemical units and splitters. Splitters are simple distillation units which are planned to split light hydrocarbons. Both petrochemical units and splitters are designed to use condensate as whole of their feedstock, while refineries have to use a blend of condensate and crude as feedstock with a ratio 1 to 9. Thus petrochemical units and splitters are major consumers of condensate. The current petrochemical and splitting capacity in Asia Pacific and Middle East is totally around 1/8 million barrels per day. It is expected to see condensate refining capacity additions in both Middle East and Asia Pacific regions during the coming months. 120 kb/d Persian Gulf Star 1 in Iran and 140 kb/d Ras laffan 2 in Qatar are going to come on stream in the near future and Qatari splitter will reduce the country’s exportable condensate by around 140 kb/d. Going to Asia pacific, 130 kb/d Hyundai Lotte splitter in South Korea is planned to start operation from end of third quarter 2016. With consider to the expected domestic demand for Qatari Condensate, Qatar condensate availability for export will be limited.

Condensate Export from M.E. and outlook (kb/d)

The condensate demand mainly originates from Asia in particular South Korea and Japan, while the main source which meets this demand is Iran and Qatar as explained. In South Korea total splitting capacity is around 400 thousand barrels per day and is going to be decreased by 100 kb/d reaching to 500 kb/d in September 2016. Iran is already covering a large share of South Korean condensate requirements and also there are some signed agreements between South Korea and Iran to deliver S.P. condensate to the new splitters coming on stream in the South Korea. This story is happening not only in South Korea but also in other Asian condensate importers such as Japan, Singapore, China and UAE. Looking forward, Iran is likely the leading supplier in South Korea and among other newcomers market.

Iranian S.P. Condensate boom days are coming on the back of new production additions. The development plan of the rest phases of the S.P. gas field aims to help Iran to be the leading market in supply of condensate. As well as Supply side opportunities in Iran, there are also new opportunities in demand side. Emerging consuming units in Asia and also growing interest among refineries to use condensate as any light crudes will support S.P