SP Will Give Impetus to Gas Exports

SP Will Give Impetus to Gas ExportsSP Will Give Impetus to Gas Exports

Gas export capacity will increase by 150 million cubic meters per day (mcm/d) in the next three years, Mehr news agency quoted managing director of the National Iranian Gas Company (NIGC) as saying.

Given the region's lucrative market and a projected rise in Iran's export volume, grounds are to be paved for new gas export agreements, Alireza Kameli said Friday.  

The growth in export capacity is anticipated following the 100 mcm/d increase in gas production from the South Pars gas field.

Negotiations were held with Kuwait, UAE, and Oman regarding gas exports from Iran to the Persian Gulf states, Kameli said. "Although negotiations were satisfactory, no final agreement has been reached so far."

On gas exports to Afghanistan, the official said that the project does not seem to be economically viable as it would require an extensive pipeline to begin with. "Besides, Afghanistan has a very limited market," he noted. Currently gas export to Afghanistan is considered in the form of CNG, and feasibility assessments are being carried out.

Iran intends to increase gas trade with its neighbors, since the long-term essence of gas export contracts will result in strengthened trade relations and subsequently closer political ties, according to Kameli.

The domestic 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).

Processed sweet gas with a capacity of eight million cubic meters was injected into the 7th pipeline by connecting the 42-inch pipeline of phases 17 & 18 of South Pars gas field's refinery to the Seventh national pipeline. 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.