Energy

Upward Trend in Iran's South Pars Natural Gas Field Production

South Pars Gas Complex in Bushehr Province has produced 700,000 barrels of gas condensates per day during the first 10 months of the current Iranian year (March 21, 2022-Jan. 20), director of Supervision Department of the complex said.

"Daily output showed 20,000-barrel growth compared with the corresponding period of 2021 when production was less than 680,000 per day," Ali Ahmadi was quoted as saying by IRNA.

Over 600,000 barrels of gas condensate are supplied to Persian Gulf Star Refinery in Hormozgan Province and Nouri Petrochemical Complex in southern Bushehr Province as feedstock on a daily basis, he added.

SPGC accounts for 73% and 92% of total natural gas and gas condensate output respectively in Iran.

"The share of fossil fuel in Iran's energy basket is 74%, of which 50% are produced by SPGC.” 

The official noted that SPGC accounts for 96% of liquefied petroleum gas, 100% of ethane and 55% of sulfur produced in Iran.

Data pertaining to 2022 show a rise in output of a variety of byproducts, namely ethane (20%), LPG (25%) and sulfur (12%), compared to the year before.

Giving a breakdown, he noted that SPGC produces 16,000 tons of ethane on a daily basis, most of which is used as feed stock in Morvarid, Kavian and Jam petrochemical companies in Bushehr Province.

“LPG output reached 22,000 tons in SPGC in the 300-day period, showing a 25% rise compared to a year ago,” he said adding that the commodity is exported to international markets via LPG carriers by land and the sea.

According to the official, SPGC produced 680,000 tons of sulfur in the 10-month period, of which 480,000 were sold in East Asian markets.

 

Mercaptan Output

SPGC’s mercaptan output in the period surpassed 500 tons, up 12% compared to a year ago, all of which was sold to regional natural gas firms.

Mercaptan, also known as methanethiol, is a foul-smelling gas that is added to natural gas. Since natural gas is colorless and odorless, the odorant makes it easier to detect. It is added as a safety measure to ensure that natural gas leaks do not go undetected.

Mercaptan is an organic gas composed of carbon, hydrogen and sulfur. Mercaptans bond strongly with mercury compounds, and most release strong odors that resemble those of garlic or rotting cabbage.

Natural gas distributors began adding these mercaptans to natural gas after a deadly school explosion in 1937 at the New London School in New London, Texas. Currently, most gas odorants are mixtures of mercaptans and sulfides.

According to Ahmad Bahous, managing director of the gas complex, operations to develop South Pars Gas Complex in Bushehr Province are underway with the aim of enhancing gaseous products’ exports and storage.

“SPGC is building not only facilities to store liquefied petroleum gas but also increasing loads to facilitate sulfur exports," Ahmad Bahoush was also quoted as saying by the Oil Ministry’s news portal.

The under-construction structures and new gas sweetening trains will help the company raise its export of products ranging from ethane, butane, LPG and sulfur to gas condensates, he added.

South Pars, the world's largest gas field shared by Iran and Qatar, was developed in 24 phases, of which 22 phases are operational and Phase 14 is undergoing completion. Phase 11 has not been developed yet.

More than 2,300 billion cubic meters of natural gas have been processed in the refineries of the South Pars Gas Field since it became operational in 1998, Bahoush added.

“The main mission of the complex is to create maximum value from the gas resources of the region.” 

“Last year, following innovative measures taken by local engineers and experts of the complex, more than 185 bcm of sweet gas were injected into the country's national network, and we hope that the figure will increase significantly this year with the successful overhaul operations in the refineries of the complex.”

Bahoush noted that $78 billion have been invested to develop SP since 2002 when the field’s daily output was 32 million cubic meters and accounted for less than 10% of Iran’s gas requirements.

According to Alireza Hoqouqi, deputy director of the ninth refinery of SPGC, the facility is almost self-sufficient in the manufacture of equipment and parts used in the refinery.

“In this year's overhaul of the complex, relying on the knowhow, commitment and expertise of local manufacturers, we have achieved more than 90% self-sufficiency in supplying equipment and parts of fixed devices required in the facilities,” he said.