SP13 Sulfur Recovery Unit Starts Up
The first sulfur recovery unit (SRU) of Phase 13 of South Pars gas field has become operational in order to prevent the burning of acid gas in the refinery flares, manager of SP13 development said.
Payam Motamed said: “The first train of SRU 108 of SP13 refinery became operational owing to round-the-clock efforts by the client and the contractor.”
He added that the unit started work with the delivery of 6 tonnes per hour of acid gas to the furnace.
Noting that SRU is an environmentally significant refinery project in SP13 alongside gas sweetening trains, he said: “Currently, acid gas from the first and the second trains of SP13 refinery is being delivered to SRU 108 at the rate of 25 tonnes per hour and 20% hydrogen sulfide concentration.”
The sulfur recovered from this unit is very instrumental in removing environmental impacts and reducing air pollution.
“With the completion of SRU units at SP13 refinery, sulfur production capacity at this refinery will increase to 400 tonnes a day,” said Motamed.
“Furthermore, with the injection of sour gas from SP6-8 to the third sweetening train of SP13 refinery, the last sweetening train of the refinery of this phase came on-stream,” he added.
Motamed said the remaining three trains – 1st, 2nd and 4th – had already come online. He added that the third train gas at SP13 refinery would be fed into national grid soon.
SP13 development is for the recovery of 56 mcm/d of rich gas from the giant offshore South Pars reservoir. Once fully developed, it will be producing 50 mcm/d of sweet gas, 75,000 b/d of gas condensate, 400 tonnes a day of sulfur as well as 1 mt/y of ethane and 1 mt/y of propane and butane.
Euro-4, Euro-5 Gasoil Output, Distribution Up
The startup of gasoil hydrotreating unit of the Bandar Abbas and Tabriz oil refineries has increased Iran’s Euro-4 and Euro-5 gasoil production by 17 ml/d, a senior official said.
Saeed Madah Moravej, chief production supervisor and coordinator at the National Iranian Oil Refining and Distribution Company (NIORDC), said the gasoil output hike showed 75% increase in national production rate.
“In line with the Petroleum Ministry’s environmental obligations, the gasoil hydrotreating units of the Tabriz and Bandar Abbas oil refineries were launched,” he said.
“With the startup of these units, the sulfur content of gasoil supplied by these refineries has dropped from 10,000 ppm to 50 ppm and in some units from 10,000 ppm to 10 ppm. That represents a big jump in high-quality product supply,” he added.
High-Quality Gasoil Distribution
Mohammad Reza Mousavikhah, CEO of National Iranian Oil Products Distribution Company (NIOPDC), said Euro-4 and Euro-5 gasoil distribution was under way in Iran.
He said the high-quality gasoil distribution was aimed at protecting the environment, as pledged by the Petroleum Ministry.
“Clean air and reduced pollution is the outcome of high-quality gasoil distribution in the country,” he added.
Mousavikhah said the Bandar Abbas oil refinery accounts for 14 ml/d of Euro-4 and Euro-5 gasoil, adding that the product was being distributed in the cities of Bandar Abbas, Chabahar, Bushehr, Kerman and Shiraz.
“3 ml/d of gasoil is produced at the Tabriz refinery for distribution in the provinces of East Azarbaijan, West Azarbaijan, Kurdestan and Ardebil,” he added.
Mousavikhah also referred to Bandar Abbas, Bushehr and Chabahar as the three main ports in Iran, saying: “Euro-4 and Euro-5 gasoil distribution in these three major export ports, which represent a big section of national transportation, is of paramount significance.”
Jump in Urban, Rural Gas Supply
The director of gas supply at National Iranian Gas Company (NIGC) has announced a big jump in gas distribution in cities and villages.
“Gas supply to power plants and industries and financing of related projects are among outstanding measures in recent period,” Saeed Momeni said.
He said 127 cities were connected to the national gas gird over the past five years, adding that the number of villages receiving natural gas had increased from 14,000 to more than 27,000.
Momeni said since 2014, 10 villages had been connected to gas grid per business day.
“In the current Iranian calendar year, NIGC was faced with very special conditions in terms of financing. Fortunately, we have been through,” he added.
Momeni said except for one power plant, all other power plants in the country were running on natural gas, citing economic benefits of gas supply to the power plants.
Ultra Heavy Drilling Mud Made in Iran
Iranian drilling engineers at National Iranian South Oil Company (NISOC) have managed to build ultra heavy drilling fluid for the first time in the country, NISOC CEO Ahmad Mohammadi said.
“Due to unconventionally high pressure in one of wells at the Bibi Hakimieh field, numerous approaches were looked into for well inhibition and finally ultra heavy drilling fluid weighing 174 pcf was developed,” he said.
“The heaviest available mud weighs 164 pcf, and we had to inject a far heavier mud in order to tolerate the well’s 2,400 psi pressure and prevent blowout,” he added.
Mohammadi said the weight of drilling mud needs to be calculated with prevision to not penetrate the formation besides preventing blowout.
He said the 174 pcf mud built in Iran was sufficient to overcome well currents.
Mohammadi said the drilling mud was an achievement recorded at the Office of Deputy NISOC for Drilling.
“We are now ready to share the knowhow for building and injecting this ultra heavy drilling mud with other Iranian and foreign companies drilling high-pressure reservoirs,” he added.
Mohammad Reza Pasand, director of NISOC drilling training affairs, said blowout prevention was possible by Iranian technicians.
He said a 50-day well control training program was to start based on standards of International Well Control Forum (IWCF).
“Under this program, 12 staff from the Department of Drilling Engineering and Operations will learn necessary skills to indigenize well blowout prevention,” said Pasand.
“The main issues taught during the training period would be general information, blowout control, well pressure equations, phasic well control, auxiliary equipment, well control and kill forms, well blowout challenges, operating drilling systems, drilling by changing parameters and operating simulators,” he added.
35 Wells to Produce at South Azadegan
A total of 35 wells are to start production at the South Azadegan oil field by February, CEO of Petroleum Engineering and Development Company (PEDEC) Touraj Dehqani said.
He added that PEDEC planned to launch a mobile processing unit in the field which Iran shares with Iraq.
“Building a mobile processing unit for the first time in Iran is among important development measures at the South Azadegan oil field. This project is being installed by a foreign company to come online in coming months,” he said.
Dehqani said the startup of mobile processing facility and the completion of new wells would add about 50,000 b/d of oil to the South Azadegan oil field. He expressed hope the production capacity would reach 150,000 b/d.
He also said that PEDEC brought production at South Azadegan from 30,000 b/d to nearly 100,000 b/d after the completion of 50 new wells.
Dehqani said development of the South Azadegan oil field was one of the biggest oil development projects in Iran, which was financed domestically. The remarkable progress in drilling operations by Iranian contractors is among the main achievements of operation in South Azadegan, he said.
Dehqani said two oil and gas separators were close to coming online soon.
He said National Iranian Oil Company (NIOC) was determined to enhance recovery from South Azadegan.
“To that end, significant measures have been undertaken, which are not limited to the mobile processing unit. For instance, in order to support domestic manufacturing and engaging domestic manufacturers, orders placed for purchasing commodities which could be manufactured in the country were cancelled,” said Dehqani.
“PEDEC is seriously supporting the policy of maximum engagement of domestic potential,” he said.
$8.5bn Petchem Projects Under Way
CEO of Persian Gulf Petrochemical Industries Company (PGPIC) said nine petrochemical projects worth $8.5 billion were under way in Iran.
Jafar Rabiei named them as Bid Boland refinery, NGL 3200, Hengam, Apadanda, Gachsaran, Sadaf, Lordegan and Ilam.
In a meeting with CEO of National Petrochemical Company (NPC) Behzad Mohammadi, Rabiei said PGPIC was the largest holding in Iran.
He said PGPIC was ranked the second in Iran in terms of selling index, noting it was the first exporter of non-oil products in the country.
He said PGPIC output totaled 24 mt/y. “The company’s output crossed 20 mt for the first time in 2017. The holding’s subsidiaries account for 37% of Iran’s total petrochemical output.”
Rabiei said PGPIC accounted for 41% of Iran’s total petrochemical exports, adding that the holding’s exports reached 8.5 mt in 2017.
Explaining about one of PGPIC projects, he said: “Under the aegis of cooperation between petrochemical and oil sectors, operations have recently begun for gathering flare gas in southern oil-rich areas.”
“Preliminary studies have been completed for the project and I hope that we will be able to fulfil our obligations for ending the burning of flare gas in two to three years,” he added.
Rabiei said PGPIC’s global ranking was indicative of the success and influence of this company in the region and the world.
“PGPIC’s exports are exclusively handled by the Petrochemical Industry Commercial Company. Fortunately, we are working in a coordinated and centralized manner with regard to exports at PGPIC and its subsidiaries,” he added.
Rabiei said PGPIC and its four subsidiaries: Petrol, Mobin, Fajr and Pars were in the list of the Iran Mercantile Exchange. He said they made up 13% of IRMEX stocks.
“The exchange is very tumultuous, but we have offered reasonable support to our stockholders,” he said.
Ilam Gas Refinery Saves $1mn
The Ilam gas refinery has saved $1 million a year after switching to domestically manufactured commodities, the refinery’s manager said.
Shahryar Daripour, CEO of Ilam Gas Refining Company, said 10 projects were under way to support domestic manufacturers and domestic products.
He said the projects included a cooling unit to overcome the temperature challenge in gas recovery units, launching filter and heater system on gas and condensate injection, revising and updating risk studies and equalizing safety levels, reviving used chemicals, supply of necessary chemicals with the help of domestic producers, building storage facilities for used amine and utilities, building wastewater recycling unit, studying aluminum transducers, enhancing the output of air coolers and reconsidering the fire extinguishing system.
“The company is making efforts to procure its necessary commodities from domestic suppliers without dependence on foreign countries. That will help us save $600,000 by next March”, said Daripour.
He said that the 10 projects would also help reduce maintenance costs and fully eliminate environmental pollutants caused by industrial wastes.
“With the completion of these projects, useful results will be achieved. In addition to sustained production and increased output, it will contribute to upgrading the safety level of processing facilities,” he added.
13 Petchem Commercialization Deals Struck
Petrochemical Research and Technology Company (PRTC) has signed 13 contracts with Iran’s petrochemical industry for commercialization of petrochemical products, CEO of PRTC Ali Pajouhan said.
He added that the commercialization agreements included “contracts for producing catalysts, chemical agreements and processing agreements.”
Pajouhan reaffirmed National Petrochemical Company (NPC)’s support for domestic production, saying: “PRTC’s technical achievements have become much more practical and technologies have become more mature.”
He said that it was unreasonable to expect quick income generation after knowhow is provided to the industry.
Referring to the high potential of human resources at PRTC, Pajouhan said: “Starting up plants and supplying products would increase creativity and motivation in PRTC researchers.”
He said that PRTC was serving as the link connecting the industrial sector with universities, adding that the industry partly owed its knowhow to cooperating with universities.
He said five catalyst production plants were under construction, adding that all five plants would become operational over two years.
“The necessary investment for building these units will be provided by the private sector,” said Pajouhan.
He also touched on PRTC’s activities in petrochemical processing, saying: “For instance, this company is working on the demo plant of polypropylene process and we hope that it would be commercialized next [calendar] year.”
MOU Signed for Gas Field Development
A memorandum of understanding has been signed for the development of the Toos gas field.
The MOU was signed between the Iranian Central Oil Fields Company (ICOFC) and Petropars for the development of the Mozdouran reservoir, as well as appraising the Kashfroud and Shourijeh formations in Toos.
Ramin Hatami, CEO of ICOFC, said the MOU would be in effect for three months. “In light of Petropars capabilities and background, we expect this feasibility study project to have been done on time,” he said.
Referring to the significant role of gas field development in economic prosperity in the country, Hatami said: “Development and operation of the Toos gas field will result in the economic prosperity of the region and sustainable energy supply to north and northeast Iran.”
He highlighted the strategic location of the Khangiran operational zone and the East Oil and Gas Production Company, saying such location would require paying due attention to projects.
Located 100 kilometers northeast of Mashhad and south of the Khangiran and Gonbadli fields, Toos was discovered in 2009. So far, an exploration well has been drilled in the field.
Petchem Sector Open to Private Investment
National Petrochemical Company (NPC) is ready to facilitate private sector investment in order to reduce risks, the director of NPC investment division said.
“The private sector, particularly small and medium-sized companies in Europe and some big Asian companies would like NPC to have a big share in petrochemical industry investments due to its governing role,” Hossein Alimorad said.
He said NPC was legally barred from investment, noting that investment was authorized only in specific cases.
“NPC believes that the private sector is mature enough to take steps for managing investment risks and partnership with foreign companies under NPC support,” he added.
“The government prefers a bigger share in investment for the private sector. However, it may seem that using domestic potential and technical savvy would pose big risks to the private sector,” said Alimorad. “Therefore, NPC can emerge as a supporter in the process of investment and application of domestic potential and technical savvy.”
“For instance, to reduce investment risks in a specific project by using domestic technical knowhow, it can support an investor’s contract with Petrochemical Research and Technology Company (PRTC),” he said.
“In support of resilient economy and domestic manufacturing, I hope that NPC would be able to support investment in such projects in line with state laws,” said Alimorad.
“I believe that NPC’s contribution to the process of investment in this industry will help its development, and will accelerate manufacturing and production,” he said.
Alimorad said a number of foreign companies were considering investment projects in Iran in light of international developments.
He said the European Union’s mechanism of Special Purpose Vehicle (SPV) would facilitate investment not only in the oil sector but also in the petrochemical sector by small and medium-sized European companies.