Iran Gas Output Up 170 mcm/d
Bijan Zangeneh, the Iranian minister of petroleum, says the inauguration of 11 development phases of South Pars gas field under the administration of President Hassan Rouhani indicated that Iran is a technically and industrially powerful country.
Zangeneh, who was addressing reporters during a ceremony to launch phases 17&18, 19, 20&21 of South Pars, also talked about Iran's gas export strategy, implementation of Iran Petroleum Contract (IPC), oil deal with Russia and future cooperation between OPEC and non-OPEC oil producers.
The minister said inauguration of eight oil and gas projects in Assaluyeh, valued at $20 billion, in a single day was "unprecedented in the history of Iran's petroleum industry".
He cited six phases of South Pars, saying: "By inauguration these phases, 170 mcm/d is added to the sour gas production capacity of South Pars gas field. Furthermore, in each phase, half a million tones of ethane and half a million tones of LPG as well as 35,000 to 40,000 barrels of gas condensate is produced."
Zangeneh said the six phases were valued at $18 billion, $10 billion of which had been invested years ago. The rest was earmarked after Rouhani took office.
He also referred to recovery from the oil layer of South Pars, saying: "Currently Iran is recovering 25,000 b/d of oil from this field."
Zangeneh said four petrochemical projects, including Phase II of Kavian, Entekhab, Morvarid and Takht-e Jamshid, had become operational.
"Of course, two other petrochemical projects including Pardis III and Kaveh methanol project, which is the largest methanol plant in the world, will be inaugurated soon," he added.
11 South Pars Phases
Zangeneh said Iran's gas production had been multiplied by 2.4 compared in four years. "It shows that we have reached a balanced state in terms of gas recovery from South Pars gas field."
He noted that the 11th administration was under international sanctions for two and a half years.
"We endured the toughest sanctions on oil exports, revenues and access to banks and equipment under the 11th administration and we managed to implement these projects when sanctions were severely imposed on us," said the minister.
Zangeneh said South Pars development started 19 years ago, adding: "In less than 20 years we are witnessing such greatness in this zone, which indicates the endeavors undertaken by all administrations for the glory for Iran."
He said the inauguration of these phases sent a message to the world. "The South Pars [development] phases were inaugurated under the tough conditions of sanctions and sent a signal to the international community and the region that Iran can operate projects under tough conditions of sanctions as well."
"The world must know that Iran is a technically and industrially powerful country and the inauguration of the phases bears witness to that," he said.
Oil and Environment
Zangeneh also touched on measures taken by the Ministry of Petroleum in Hoor al-Hovayzeh, saying: "As soon as I resumed working in the Ministry of Petroleum I made it clear that I disagreed with drying the Hoor. As we work in the water in the Persian Gulf we have to do the same here if necessary."
The minister said water in the West Karoun area was shallower than in the Persian Gulf, imposing heavy costs on the Ministry of Petroleum.
"However, the Ministry of Petroleum in the 11th administration did not inflict any damage on Hoor al-Hovayzeh and by conducting activities in shallow water in the Hoor, it has prevented the drying up of the Hoor and the destruction of ecosystem in this area," he added.
Referring to environmental activities in Assaluyeh, Zangeneh said: "Regarding flares, we have here in Assaluyeh many flares which will be put down in one or two years. The reason is that regulating the flares is time-consuming. Most of our units are being launched and they need regulation. Furthermore, older units are in much better conditions now and their gas flaring is improving from day to day."
Referring to air pollution in Khuzestan Province due to the flares, he said: "The most important measure we have taken in this regard was Amak project (associated gas gathering project). Acid gases have been eliminated and carried to Razi Petrochemical Plant for production."
He also cited incentives for reducing flare gases as readiness for ceding flare gas projects to prospective investors at very low price.
South Pars Output Exceeds 1 tcm
Zangeneh said the South Pars output reached 575 mcm/d in March, adding: "During the first four-months of the [calendar] year 1392 (started March 21, 2013), this figure was 240 mcm/d and the average production in that year was 270 to 280 mcm/d."
"If we take into account the average production in the year 1392 when the 11th administration contributed to output enhancement or take into account the average output of the preceding year, it can be said that gas production in South Pars has now nearly doubled," said the minister.
Zangeneh said the total South Pars gas output reached 570 bcm up to March 2013. "Total production from South Pars gas field reached 1,060 bcm, which is nearly double, by" March 2017, he said.
IPC Inevitable
Zangeneh referred to IPC, saying: "We exhaust our efforts for the finalization of the contracts