Page 5 - MEOG Week 03 2022

MEOG COMMENTARY MEOG

Image: Tehran Times

Minister Houshang Falahtian said that this Meanwhile, he said that North Pars, which is
increase would cost closer to $80bn. located close to Iran’s southern coast, “is equiva-
This is hardly surprising, given that a sum lent to four phases of South Pars”.
of $22bn has been earmarked for countering The official added: “Of course, the fluid of this
natural decline at South Pars by 2027-29, with field is different from South Pars field. We are
the majority of this to be spent on compression taking two steps to produce from this field. First,
platforms and acidification to raise pressure and start drilling a well and select a contractor to
maintain gas flows. assemble the previous facility. The second thing
is that we are choosing a consultant to conduct
Other fields conceptual studies on this field.”
Meanwhile, development plans are in place for He said that output from North Pars is esti-
the country’s other large gas assets. Falahtian mated to run at around 100 mcm per day, with
highlighted Farzad A and B, Kish and North Kish anticipated to produce at a similar level.
Pars, all located in the Persian Gulf, as areas of
focus. Shortfall
Of Farzad A, he said that Iran’s development Iran is the fourth-largest gas consumer globally
trails work on the Saudi Arabian side, where the after the US, China and Russia, with around 99%
southern portion of the deposit is known as the of its population connected to the grid.
Hasbah gas field. “We have started the appraisal Amid a recent increase in industrial activity,
and preliminary operations,” he added, “but now peak winter demand and pipeline issues led to
our main focus is on Farzad B field.” shortfalls of up to 200 mcm per day and issues
For the latter, he said: “The current plan with supplying power stations in Iraq.
focuses on the supply and installation of jack- The shortages have become so bad that the
ets in this gas field, and we have accelerated this government has asked various industrial facili-
work. The jacket of this field has now been deter- ties to stop their operations to ensure supplies are
mined, and it will take about six months to move sufficient to cover residential use, while residen-
and install this jacket.” tial users were requested to moderate consump-
Meanwhile, Falahtian said that “14 wells had tion and closely monitor heating.
been drilled in the Kish gas field in the past, but Falahtian noted that the deficit could grow to
these wells need acid work. Preparing these wells 350 mcm per day without significant investment
for production is easy. We plan to commission in the short term.
the first phase of this field, but the recovery from Meanwhile, with such potential for shortfalls,
this field requires construction of a 200-km despite its world-class gas reserves and produc-
pipeline.” tion, Iran appears to be a long way short of hav-
NIOC’s board has approved conceptual field ing enough surplus gas availability to achieve its
development plans and the company intends to long-held goal of becoming a major player in the
begin gas production there in 2023. LNG market.™

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