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SP Refinery Near Completion

SP Refinery Near CompletionSP Refinery Near Completion

The refinery of Phases 17 and 18 in the South Pars gas field in the Persian Gulf is near completion having made 93 percent progress.  Its first gas sweetening plant is also due to come on stream by mid-December, director of phases 17 and 18 said, Shana news agency reported Monday.

"The platform 17 flare is expected to be lit in the next two weeks, ready to supply sour gas to onshore phases of SP, Hassan Bouyeri said, adding that gas for the phases 17 and 18 refinery will be temporarily supplied by phases 6, 7 and 8.

Development of phases 17 and 18 commenced in 2007 and was due to be completed in 2013 but was met with delays, he noted.

The two phases are designed to produce 50 million cubic meters (mcm) of gas per day and 80,000 barrels of gas condensate once fully operational.

Phases 17 and 18 are under development by a consortium of three companies; the Industrial Development & Renovation Organization of Iran (IDRO Group), the Oil Industries' Engineering and Construction (OIEC), and the Iranian Offshore Engineering and Construction Company (IOEC) with 48, 31 and 21 percent stake respectively.

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.

Development of phases 12, 15, 16, 17 and 18, among other SP phases, has been a priority in President Hassan Rouhani's administration. Additionally, phase 12 as the biggest SP phase in terms of volume of activity, investment and production level, is already producing 1.4 million barrel of gas condensate per month and 25mcm of gas every day, with an estimated value of $500 million.

The field is projected to generate an annual $112 billion upon the completion of all its phases.

 

Financialtribune.com