Call for Raising Value Added in Gas Sector

Call for Raising Value Added in Gas SectorCall for Raising Value Added in Gas Sector

The oil ministry plans to curb crude-selling to generate higher value added and help national growth, managing director of the Pars Special Economic Energy Zone (PSEEZ) said, Moj News Agency reported on Saturday.

"There are plans for the launch of all South Pars gas field phases in the Persian Gulf by March 2017 and increase natural gas output by 800 million cubic meters per day," Mehdi Yousefi reiterated on the sidelines of the First Conference on Persian Gulf, Asaluyeh and Security. He added that SP gas output now stands at around 400 mcm/d.

To reduce crude-selling and consume fuel in more productive ways, 30 petrochemical units are under construction in South Pars which will use gas as feedstock, 12 of which are now operating, the official noted.

South Pars is the world's largest gas field, shared between Iran and Qatar, covering an area of 3,700 square kilometers of Iran's territorial waters in the Persian Gulf. It adjoins Qatar’s North Field, which measures 6,000 square kilometers.

Underlining the Persian Gulf as the biggest source of energy in the world, he emphasized "global security depends on the security of the Persian Gulf region." Yousefi estimated the annual South Pars revenues to reach $120 billion upon the completion of all its phases, considering the price of oil at $50 per barrel.

Iran holds the world’s second biggest natural gas reserves after Russia, and the fourth-largest proven oil reserves. It holds around 17 percent of the world's proven gas reserves and more than one-third of OPEC's reserves. South Pars, the country's largest natural gas field, is estimated to hold roughly 40 percent of Iran's gas reserves.

  Tehran Gas Consumption

More than 25 billion cubic meters of gas was consumed in Tehran Province in the previous Iranian year (ended March 20) Yaghoub-Ali Hossein-Nia, managing director of Tehran Province Gas Company (TPGC) said.

He noted the number of gas subscribers in the province has reached nearly 3.5 million, as 270,000 new subscribers alone joined the national gas network in the capital last year. TPGC has also expanded gas network by nearly 25,000 kilometers across Tehran and Alborz provinces since establishment nearly 15 years ago, of which 431km was developed last year.

In addition, it supplies gas to 595 industrial units and seven power plants in Tehran Province, that is approximately one-fifths of the country's overall gas infrastructure.