SP Phase 14 to Produce 30 mcm/d of Gas

SP Phase 14 to Produce 30 mcm/d of Gas
SP Phase 14 to Produce 30 mcm/d of Gas

Two of the South Pars Phase 14 production platforms, with a capacity to produce around 30 million cubic meters of gas per day, will go on stream by the end of the current Iranian year (March 19, 2016), director of the phase said on Sunday.

Morteza Zaringol also told Shana that ramping up the volume of extraction from the South Pars joint gas fields is an economic necessity, adding that the drilling operation of the phase for early offshore development has made 64% progress.

According to the official, completion of the offshore section and taking measures to accelerate gas extraction from Phase 14 offshore platforms top the National Iranian Oil Company's list of priorities. Referring to the total number of 44 wells to be drilled in the phase, Zaringol said plans have been made to complete platforms 14A and 14C with a maximum production capacity from 22 wells. Needless to say, as soon as becoming operational, they will be able to transfer gas to other refineries which are under construction in the site.

Asked about the offshore pipe laying operation, the official said, "All equipment to lay the 105-kilometer pipeline have been dispatched to the site and experts are set to start the operation. Notwithstanding all financial constraints, the onshore pipe laying operation was undertaken and Phase 14 onshore refinery made 50% physical progress."

Phase 14 is slated to produce 56 million cubic meters of gas and 75,000 barrels of gas condensates per year to meet domestic gas demand and supply feedstock to petrochemical units in the Pars Special Energy Economic Zone in the southern Bushehr Province.

The phase is also expected to produce more than 1 million tons of gas condensates, 1 million tons of ethane for petrochemical units and 400 tons of brimstone per year.

A consortium of Iranian companies is working on Phase 14, including the Iranian Offshore Engineering and Construction Company, Industrial Development and Renovation Organization, National Iranian Drilling Company and Iran Shipbuilding and Offshore Industries Complex Company.

  Phase 19 Development  

According to Hamidreza Masoudi, contractor of Phase 19, platform 19C pipeline was laid successfully last month and production from the first platform is expected to begin in the middle of February 2016.

Masoudi noted that 15 million cubic meters of gas can be transferred from offshore facilities to the onshore sector.

"In addition, plans have been made to transfer sour gas from SPD2 platform to the refinery. The implementation of Phase 19 gas injection into Iran's Gas Trunkline—aka IGAT—has been completed."

The development project of Phase 19 is among second-priority plans of South Pars, which is expected to become fully operational by the yearend (March 19, 2016). It is currently being implemented by a consortium of Petropars Limited, Petropars Iran and IOEC under an engineering, procurement and construction contract.

Once fully operational, Phase 19 is estimated to produce 50 mcm/d of gas as well as 75,000 barrels of gas condensate, 1 million tons of liquefied natural gas and 1 million tons of ethane per year.

South Pars is the world's largest gas field shared by 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 around 6,000 square kilometers.

Iran is the fourth biggest producer and the fourth biggest consumer of natural gas in the world. It produced 173 billion cubic meters of gas in 2014, the most after the United States, Russia and neighboring Qatar.

It exports natural gas via pipelines to three neighboring countries, namely Turkey, Armenia and Azerbaijan. Ankara receives more than 90% of Iran’s gas exports under a long-term contract, and Yerevan and Baku receive around 6% and 3% of Iran’s natural gas exports, respectively, under swap agreements.