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Call for Investment in SP Pipelines

Call for Investment in SP PipelinesCall for Investment in SP Pipelines

The economic commission of parliament approved a development plan for the completion of the  remaining South Pars phases in the Persian Gulf, and investors will be called in the near future to participate, deputy oil minister said, Shana reported Saturday.

Close to $11 billion will be invested for completion of the 6th, 9th and 11th national gas pipelines in line with Note 2(G) of the national budget law, according to Hamid Reza Araghi.

The plan includes the laying of three national pipelines as well as gas delivery to small towns and villages.

Note 2(G) establishes the investment framework for the oil ministry, allowing it to invest up to $100 billion in oil and gas projects in line with Article 44 of Iran Constitutional Law to help open new opportunities to the private sector and boost privatization.

To maintain sustainable gas supply to northern regions, laying of the last phase of the 6th and 9th national pipelines will commence in the next Iranian calendar year (starting March 2014). Additionally, gas distribution capacity will increase by more than 70 million cubic meters once the 10th national pipeline and four of its compressor stations go operational in the near future.

Laying of a gas pipeline to Sistan and Baluchestan Province is part of the plan.

Araghi stressed that the laying of 3-4 thousand kilometers of pipeline has been put on hold due to delay in the inauguration of several SP phases.

The NIOC also aims to boost gas production. "Over the next three years, we must refine as much gas as the past fifty years combined, and increase gas output from 189 billion cubic meters (bcm) to 330 bcm."

Financialtribune.com