New South ParsPhases Boost Iran Gas OutputIn
the final days of Iran’s last calendar year to March 2019, several phases of the giant South Pars gas field became operational. The phases would bring Iran’s share of production from the jointly-owned offshore reservoir to 610 mcm/d
Iranian President Hassan Rouhani and Petroleum Minister Bijan Zangeneh were present at the inauguration ceremony for SP13 and SP22-24. The total investment made in the new development phases amounts to $11 billion. Given Iran’s gross domestic product (GDP) - $427 billion in the calendar year to March 2018- the SP13 and SP22-24 projects account for two percent of Iran’s GDP.SP13 and SP22-24 are aimed each to produce 56 mcm/d of sour gas, 75,000 b/d of gas condensate, 400 tonnes a day of sulfur and 1.05 mt/y of liquefied petroleum gas (propane and butane) as well as 1 mt/y of ethane to feed petrochemical plants.The SP13 and SP22-24 products would earn Iran about $5 billion a year in revenue. Working under SanctionsPresident Rouhani boasted about the inauguration of the megaprojects in Assaluyeh against the backdrop of the US’s imposition of “illegal” sanctions on Iran to ramp up pressure on Iranians.He said the South Pars megaprojects was an indication of Iran’s national strength, adding: “Iran was recovering gas from 10 phases of South Pars in 2013, but with the startup of 15 more phases over the past five years, they are now 25 phases, which means Iran’s gas production has increased.”Rouhani said Iran’s gas production boost over recent years ended the country’s dependence on gas imports in winter.“Until several years ago, Iran was dependent on gas imports in winter, as well as gasoline and gasoil, but in recent years it has become self-sufficient in all sectors,” he added.Rouhani referred to Western sanctions on Iran’s gasoline imports, saying: “As a result of the increase in gasoline production capacity, gasoline sanctions would no longer make any sense for us and we no longer need to import gasoline.”The president highlighted the startup of a gas condensate refinery and a gasoline production plant in Bandar Abbas in southern Iran. “Since the 11th administration has taken office to present, Iran’s gasoline production has doubled, which indicates petroleum industrialists’ efforts. Iran’s gasoline production has increased from 52 ml/d to 101 ml/d,” he added.Rouhani described US sanctions against the Iranian nation as a “crime against humanity” and said: “The sanctions are more of psychological warfare rather than economic war.”
SP Output Set to RiseMinister Zangeneh said the refineries of SP13, SP22-24 had become operational. “I hope that the three offshore phases of SP22, SP23-24, SP13 and SP14 would become operational” later this year, he added.The minister said one offshore section of SP14, i.e. 1 bcf, is under operation, adding that Iran’s gas production from South Pars (except for SP11) would reach 750 mcm/d by the middle of the current calendar year.Zangeneh said Iran’s annual gas production averaged 622 mcm/d in the calendar year to March 2013, which reached 841 mcm/d in the year to March 2019.“Given demand for gas, Iran’s production rate would reach 880 mcm/d in the current calendar year, and 950 mcm/d next calendar year,” he added. “It means that Iran’s gas production would soon reach 1 bcm/d.”Zangeneh said Iran’s gas production from South Pars has soared from 280 mcm/d in 2013, to 610 mcm/d now. He added that South Pars had a production capacity of 660 mcm/d.He said the first agreement for the development of South Pars was signed in 1997 and five phases became operational by August 2005. From 2005 to 2013, five incomplete phases – SP6, SP7, SP8, SP9 and SP10 – were completed.Zangeneh said SP12, which was equivalent to three standard phases, came online under the first round of the administration of President Rouhani, while SP15 and SP16 were commissioned in March 2016. He added that six conventional phases became operational in