South Pars Gas Output to Hit 630mcm/d
Mohammad Meshkinfam, CEO of Pars Oil and Gas Company (POGC), has said Iran would bring its gas recovery from the giant offshore South Pars gas field to more than 630 mcm/d.
Development of the supergiant gas reservoir, which Iran shares with Qatar in the Persian Gulf, is envisaged in 27 phases. Up to last March, 21 development phases became operational.
Iran’s Minister of Petroleum Bijan Zangeneh has said that the offshore section of three more phases of this field are coming on-stream this year to help raise gas output from South Pars.
The rivalry between Iran and Qatar for extracting gas from South Pars has entered a new phase after Qatar pulled out of the Organization of the Petroleum Exporting Countries (OPEC) to focus on gas production from its sector of South Pars.
Under the administration of President Hassan Rouhani, Iran has further developed South Pars and made 10 standard phases operational to minimize distance from Qatar. Iran has doubled its gas production capacity in South Pars. Qatar intends to concentrate its efforts on exporting liquefied natural gas (LNG).
Fresh Record amid Sanctions
Meshkinfam highlighted the enhanced gas production capacity in South Pars, saying: “According to our planning, our recovery capacity will exceed 630 mcm/d by the end of the current [calendar] year, in which case we will set a fresh record in production from the South Pars megaprojects.”
After US President Donald Trump walked away from Iran’s 2015 nuclear deal with six world powers and subsequently imposed tough sanctions against the Islamic Republic’s petroleum industry, the Iranian Ministry of Petroleum has done its utmost to develop the petroleum industry by using its own potentialities in a bid to minimize the impact of sanctions. To that effect, in light of the significance of recovery from South Pars and Qatar’s efforts to increase its output, POGC, which is in charge of South Pars development, is accelerating its development of South Pars for higher production in a bid not to lag behind Qatar.
Supplying 70% of Iran Gas Needs
South Pars covers 9,700 square kilometers, 3,700 km of which belongs to Iran. Iran’s sector of South Pars contains 14 tcm of gas plus 18 billion barrels of gas condensate. South Pars makes up 8% of total world reserves and nearly half of Iran’s gas reserves.
South Pars is currently supplying 70% of Iran’s gas needs in the household, commercial, industrial and power plant sectors.
In light of increased gas penetration rate among Iranian households and industries, the South Pars gas field’s standing takes up added significance in gas supply in Iran. Furthermore, as gas production capacity increases in this field, Iran has ended its dependence on gas imports from Turkmenistan during cold months of the year.
Given the significance of sustainable gas supply in Iran in winter, operation of South Pars development phases has picked up speed in recent years. Although US sanctions on Iran’s petroleum industry are tough, the remaining trains of South Pars phases are becoming ready one by one. Owing to their experience from the previous round of sanctions, Iranian contractors have managed to develop many offshore and onshore sections of South Pars without any assistance from foreign companies. Therefore, they are more mobilized this time to push ahead with the South Pars development.
SP13, SP14 and SP22-24 are among phases whose offshore and onshore sections are coming online gradually in order for South Pars to register a new record in gas production.
SP13 4th Train to Come Online
Meshkinfam gave a positive assessment of the pace of progress in the development of SP13 and SP22-24 in the refinery section, saying: “Currently three phases of sour gas sweetening in each of refineries have become operational and the fourth sweetening train of SP13 is close to coming online.”
Referring to obligation for operating three 1bcf/d chains in each phase of South Pars, he said: “By operating two gas platforms in SP14, the first chain of production from this phase will become operational with 28 mcm/d of sour gas recovery."
He said that the second 1 bcf/d chain would require the completion of operation of two offshore platforms of SP13.
He added: “Platform 13B was recently installed on its location in the Persian Gulf. Hookup and operation will be finished soon.”
In case of favorable weather conditions, the second offshore topside of SP13 would be installed. According to timeframe, as pipelines of this satellite platform are connected to the main platform, 13D will become operational in January.”
“Therefore, sour gas production from SP13 will reach 1 bcf/d” by mid-January, said Meshkinfam.
SP22-24 Refineries Ready for Sour Gas Feed
SP22-24 are other phases whose development has accelerated in recent months. The offshore topside of SP12 has been installed after the end of drilling operations and is about to become operational. If weather conditions turn out to be favorable it is expected to come online with an output of 500 mcf/d of sour gas to be delivered to SP22-24 refineries.
“Platform 24A is the last offshore topside that is to be installed in SP22-24 with the objective of completing a production chain of 1 bcf/d of gas,” said Meshkinfam.
This offshore topside drive is ready for load-out now. After the transfer of installation vessels from SP13 to Sadra industrial yard in Bushehr, load-out and transfer will start.
Rapidity in SP Megaprojects
Time and quality are among factors upon which Meshkinfam lays emphasis. In his view, development of phases must go on faster in order for the South Pars megaprojects to become operational in the shortest possible time.
He said that POGC has always taken effective steps in support of Iranian contractors and the prosperity of business environment for the active involvement of the private sector.
Iran is currently recovering 580 mcm/d of gas from South Pars, which is planned to exceed 630 mcm/d by the end of the current calendar year in March 2019.
The startup of each phase of South Pars boosts gross national product (GNP) by one percent. No other sectors of the economy is such significant.