Gas Supply to Sistan Baluchestan
Iran's rich gas reserves are no secret to anybody. Ever since Iran started extracting gas it was eying exports. But in the aftermath of the 1979 Islamic Revolution, Iran faced myriads events that forced it to turn to gas supply to cities and villages instead of exports. Some of them were eight years of destructive war by Iraq, international embargo, population growth, and policies of administrations and parliaments.
In its latest move, National Iranian Gas Company (NIGC) has finished its project for gas deliver from Iranshahr to Zahedan in Sistan Baluchestan Province in southeastern Iran. On March 1, President Hassan Rouhani inaugurated the gas project.
Addressing the event, President Rouhani said development of eastern provinces was important for Iran because of neighbors like Pakistan.
"One of the government's promises in this area was to supply gas to Sistan Baluchestan Province and I feel happy that this promise has come true and gas has entered Iran's easternmost province. In addition to bringing welfare for people, it will clear the way for the development of other industries and sectors in this province," said the president.
Rouhani said Sistan Baluchestan has turned into a safe zone for development and investment.
"In the near future, we will witness a major change in Makran coasts and Chabahar Port. Gas supply could significantly help this region be developed," he added.
He referred to a trilateral document for cooperation, signed between Iran, India and Afghanistan, saying Chabahar was of strategic importance.
"When this document was being signed, the Indian prime minister maintained that the world would understand a century later how this document of cooperation changed the region and the world," he said.
Rouhani said after his administration's promise for gas supply to this area came true major projects would be developed one after another there.
He cited the plan to increase Chabahar Port's capacity from 2.5 million tons to 8.5 million tons.
IRR 7.5 tn Investment
Iran's Minister of Petroleum Bijan Zangeneh said the provincial gas network in Sistan Baluchestan was one of pledges President Rouhani had made during his tour of the province in 2014.
He said gas supply to Zahedan was the main part of the project, adding that more than IRR 7,500 billion had been invested in the 262-kilometer pipeline.
According to Minister Zangeneh, the investment made in this project had been provided via saving fuel. "It was an initiative of the 11th administration and the parliament contributed to its implementation," he added.
Zangeneh said after Zahedan, Zabol would be in line to receive gas, adding that construction of a pipeline connecting Iranshahr to Konarak and Chabahar would have started.
"Khash and Saravan are next in the line and they must receive gas soon. The remaining projects will continue until this province is fully covered [by gas supply network]," the minister added.
Zangeneh noted that gas supply to Sistan Baluchestan would open a big gate for the province to undergo development.
IGAT-7 Review
NIGC agreed on the issue of gas supply to eastern and southeastern parts of the country in early 2016. This project was known under Iran Gas Trunkline 7 (IGAT-7).
IGAT-7 aims to supply gas to power plants, petrochemical plants, industrial units, cities and villages located on its route.
IGAT-7 is fed by South Pars gas field. In the first stage, 60 mcm/d of gas was envisaged for the provinces of Kerman, Hormuzgan and Sistan Baluchestan.
The first phase of this project, connecting South Pars to Iranshahr, is 907 kilometers. It crosses the provinces of Bushehr (45 km), Fars (75 km), Hormuzgan (435 km), Kerman (150 km) and Sistan Baluchestan (202 km). The pipes used in this project have a diameter of 56 inches.
Construction of this phase started in 2006. It finally became operational in 2010 with a credit of IRR 17,300 billion. It allowed gas supply to households and industrial units and power plants in Iranshahr and its surroundings.
After the first phase was launched, construction of the second phase of IGAT-7 was put on the agenda. In line with the policy of maximum gas supply to cities and villages in Sistan Baluchestan and gas supply to power plants and industries in this province, a tender bid was held as required in Iran's budget bill for 2014.
The objective sought in this project was to supply gas to some 300,000 urban and rural households in the cities of Zahedan, Chabahar, Khash and Zabol, also feed thermal and gas-fuelled power plants in Iranshahr, Zahedan and Chabahar, as well as industrial units in the province.
The power plants in the province consume nearly $2 billion worth of products a year. By supplying gas to these units, fuel could be saved.
This project will save Iran $660 million as liquid fuels would be replaced with gas. By launching this project, the ground will be prepared for economic development and prosperity, job creation, national and regional security, and more social welfare in the province.
IGAT-7 also involves seven valves, five cathodic protection stations, one transmission station, and a pressure control station and telecom system.