The Persian Gulf Petrochemical Industries Company and the Iranian Central Oil Fields Company have signed a memorandum of understanding to develop the second phase of the Tang-e-Bijar gas field to tap the hamstrung capacity of Ilam Petrochemical Plant while stabilizing the gas network in western regions, especially Ilam Province.
The MoU is a big step toward increasing the output of Ilam Petrochemical Plant, which took 17 years to build with an investment of over $1.5 billion, and the second phase of which opened last year, but feed shortages had become a serious challenge for the complex, the Oil Ministry’s news agency Shana reported.
With the signing of the MoU, gas production will increase from 7 million to 11 million cubic meters and sustainable feed of Ilam gas refinery will be provided as the main feed source of Ilam Petrochemical Complex. Now, due to the lack of feedstock, Ilam Petrochemical Plant is operating below its nominal capacity.
Founded in 2004, Ilam Petrochemical Company is an olefin plant located in western Iran, which produces a wide range of products, including ethylene, high density polyethylene, crystal melamine, ammonia sulfate and sulfuric acid.
Tang-e-Bijar is an active onshore gas field. It has recovered about 36% of its total recoverable reserves, with peak production in 2018. Based on economic assumptions, production will continue until the field reaches its economic limit in 2061.
The field is expected to recover about 27 billion cubic meters of natural gas reserves. Tang-e-Bijar gas field’s reserves account for 0.05% of total remaining reserves of global gas fields.
It is located in Ilam Province, about 50 km west of Ilam City and about 50 km southeast of Naft-Shahr Oilfield.
Ilam Gas Refinery currently uses 6.8 million cubic meters of sour gas per day as feedstock and this volume will increase to 10.2 mcm when the second phase comes on stream by 2025.
With the completion of the second phase, the refinery's products, including natural gas for urban and industrial use, sulfur, ethane, gas condensate and liquefied petroleum gas, which are used as the feed for Ilam Petrochemical Complex, will increase by 1.5 times.
