New phases of South Pars gas field are joining Iran’s production wheel and the rocketing output of liquid petroleum gas (LPG) has required the oil officials in Iran to enlarge the sea transportation capacity of the product.
Hassan Khosrojerdi the president of exporting syndicate of oil, gas, and petrochemicals expressed regret that even with deluging demands for Iran’s liquefied gas from Asia, Europe and Africa the fleet to carry the product is insufficient and the full capacity of exporting LPG is still left unmet.
Even with recent boost in the number of carriers, the minimum number is way to go, Khosrojerdi added.
Mohammad Souri, Counseling Deputy of Iran’s Oil Ministry recounted that 15 new carriers have been added to Iran’s LNG carrier fleet out of which five are bought by the state sector and the rest belong to the private sector.
Souri hailed that the new improvement in the fleet has an impressive effect on exporting capacity but added that there is more to do to get to full run.
Early in May Managing Director of Pars Oil and Gas Company (POGC) Ali Akbar Sha’banpour noted that production of natural gas from South Pars gas field will increase by 7 trillion cubic feet per day (tcf/d) before the end of the current Iranian calendar year (March 20, 2016).
During past years, Iran, which sits on the world’s largest gas reserves, has been making efforts to increase gas production by attracting foreign and domestic investment to South Pars gas field.
The huge offshore field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar’s territorial waters.
The field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate.
On March 17, Iran officially launched Phase 12 of the field, in which over 7$ billion had been invested, in the presence of Iranian President Hassan Rouhani. Phase 12 of South Pars is expected to earn the Islamic Republic 6$ billion a year in revenues.
On April 27, Reza Forouzesh, official in charge of the development of South Pars phases 15 and 16, announced that the two phases will come on-stream in June, two months ahead of schedule.
The two phases are expected to produce 50 million cubic meters per day (mcm/d) of natural gas, 80,000 barrels per day (b/d) of gas condensate, 400 tons a day of sulfur as well as 1 million tons a year of liquefied natural gas (LPG) and 1 million tons of ethane.