New Pressure Booster Raises Gas Transmission
Along with gas production hike, gas transmission and extension of gas supply network have been among major policies of the Iranian Ministry of Petroleum under Minister Bijan Zangeneh.
On October 17, Hamid-Reza Araqi, CEO of National Iranian Gas Company (NIGC), inaugurated a gas pressure booster station in Farashband in southern Iran. This new facility will bring the capacity of gas transmission from southern to northern Iran to 90 mcm/d, up 40 mcm/d from the current capacity.
Iran, whose total gas reserves stand at more than 34 tcm (18% of total world reserves), delivers more than 700 mcm/d via 35,272 kilometers of pipeline to consumers (power plants, industrial centers, businesses and households).
In addition to high-pressure pipeline, 70 gas pressure booster facilities, 40 pipeline operating centers and 277 turbocompressors are tasked with providing necessary pressure for gas consumption in Iran.
The Farashband gas pressure booster facility, located in the southwest of Fars Province, is among highly important and strategic stations in that area because of its important role in taking gas produced in southern Iran to consumer centers in northern Iran.
At the inauguration ceremony, Araqi said that the Iran Gas Transmission Company (IGTC) had operated the project.
"This is the first time that this company assumed such a responsibility and it managed to accomplish it successfully," he added.
Araqi referred to guaranteed and sustainable gas supply while respecting environmental protection regulations as a mission of the NIGC, saying this project was in line with this mission.
He also referred to efforts for finding new gas reservoirs, operation of new phases of South Pars gas field, operation of gas pipelines and gas pressure booster facilities as policies lying within the framework of sustainable gas supply.
Araqi said: "So far, 300,000 kilometers of urban network, more than 35,000 kilometers of transmission pipeline and 280 turbocompressors have been built and operated in Iran."
Gas Supply to Power Plants
Araqi referred to gas supply to power plants under the first administration of President Hassan Rouhani, saying: "Before the 11th administration took office, gas had a 50% share in fuel supply to power plants, but this share has now reached 90%."
In the last calendar year to March 2017, 62 bcm of gas was delivered to power plants across Iran.
He said that replacement of liquid fuel with gas had provided the ground for exporting petroleum products.
Talks with Turkmenistan for Lower Price
Araqi said that the inauguration of new phases of South Pars under the 11th administration and the ensuing increased gas production capacity spared Iran any harm after Turkmenistan cut its gas supply to Iran earlier this year.
"In the past, Turkmenistan halted its gas supply to Iran to charge more, but when it did so last winter, through managing consumption we prevented any problem in gas supply to Iranian consumers," he said.
"We are currently in talks with Turkmenistan in order to lower the price of gas and resume gas imports from this country. These talks indicate Iran's position of strength," said Araqi. "The talks with Turkmenistan are going on smoothly and we hope to reach a conclusion before a court hearing is held."
Iran and Turkmenistan signed a 25-year agreement in 1997 for gas delivery via a 200-kilometer pipeline. Under the agreement, Turkmenistan is committed to export more than 23 mcm/d of gas to Iran. Last winter, Turkmenistan halted its gas supply to Iran, demanding higher prices.
"In line with the development of South Pars, the Iran Gas Trunkline 10 (IGAT 10) and the pressure booster stations of the Iran Gas Trunkline 8 (IGAT 8) have become operational in order to increase gas transmission," said Araqi.
"Currently, the IGAT 6, gas pipeline to Basra and Iranshahr-Chabahar gas pipeline are under way," he added.
Saeed Tavakoli, CEO of IGCT, said his company was tasked with operating 35,000 kilometers of pipeline, 80 gas pressure booster facilities and 280 turbocompressors.
He said the Farashband project had been operated in an EPC and PC framework. "This station is located at the corridor of connection 2, 3 and 10 of national gas transmission trunkline, which are all among Iran's strategic areas," he added.
Gas Exports to Basra
Araqi also said that gas exports to Basra, Iraq's second city, are to start soon. "Gas exports to Baghdad are under way and the gas flare at Shalamcheh border will be turned on soon and we get ready to export gas to Basra."
"Currently, Iran is exporting 10 mcm/d of gas to Baghdad and our gas exports to Basra will start with a rate of 7 mcm/d," he said, adding that Iran would be finally supplying 50 mcm/d of gas to the cities of Basra and Baghdad together.
Araqi said providing sustainable and reliable sources are among requirements for business excellence that would be instrumental in the value chain of NIGC.
After five centuries of activity, the NIGC is now pursuing long-term objectives to step into world markets and become a brand, he said.
To that end, he added, huge efforts including precise planning, organization, mobilization of resources, and supervision on operations are needed.
Araqi said mobilization of resources included gas, finance and human resources. "With these three resources, refineries need to have sustainable production in order to guarantee sustainable gas supply in the country," he said.
Araqi said gas storage was the first source, adding: "In addition to these stocks, consumption needs to be managed and new approaches should be developed for promoting the culture of proper use of these resources."
Regarding financial resources, he said temporary resources included collection of debt, development of new methods of financing and buyback.
"The permanent sector includes signature of agreements for gas exports, selling condensate, LPG, sulfur and ethane, and particularly improving the quality of products for sale. That would provide reliable sources for the company," said Araqi.