Oil, Gas Condensate Output to Hit 5.7 mbpd

Oil, Gas Condensate Output to Hit 5.7 mbpdOil, Gas Condensate Output to Hit 5.7 mbpd

Iran's oil and gas condensate production capacity will exceed 5.7 million bpd by 2018, deputy oil minister, Mansour Moazami, was quoted by Shana news agency as saying Tuesday.

Increasing gas production by 100 million cubic meters per day (mcmd), and gas supplies to power plants by 30 percent, along with an increased gas export are among the measures taken by the oil ministry to realize the principles of the 'Resistance Economy,' a policy proposed by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei to counter the sanctions, promote domestic growth and reduce consumption.

"Demand for crude oil will amount to 9.2 million barrels per day (bpd) in 2015," the official said, adding that Iran's oil export has increased by seven percent in the first nine months of the Iranian calendar year (March-December 2014).

The country's gas production capacity increased by 100 mcmd in the current Iranian calendar year, and there are plans for a further 100 mcmd increase next year, to reach the production target of 200 mcmd by the end of next year (March 2016).

Gas production capacity is expected to reach 1,300 mcmd in 2018, once the development projects currently in hand are completed.

Seven phases of the South Pars gas field are projected to go on stream by March 2016.

Gas condensate production reached 19 million cubic meters in the first nine months of this year, one mcm more than the same period a year ago.

Production of liquefied petroleum gas (LPG) reached 1.4 million metric tons (mmt) in the March-December period, up from 630,000 metric tons in the same period last year, with methane production at 1.1 mmt in the nine-month period, almost level with last year's output over the same period.

Export of petrochemicals is another priority of the ministry, the official noted. Iran will be capable of exporting petrochemicals worth $80 billion by 2021, provided funding is allocated.  There are currently 67 semi-finished projects with a capacity of 60 million tons, the completion of which needs $36 billion.

Currently, 45 petrochemical units produce around 60 million tons of products, accounting for 36 percent of the total non-oil exports. According to global estimates, Iran holds 24 percent of Middle East’s and 4.2 of the world’s petrochemical production capacity. Iran’s main petrochemical exports mainly include methanol, urea, polyethylene and aromatics.

The oil ministry aims to commission 8 to 10 gas to propylene units (GTPP). A public tender will be held before the yearend.