Page 4 - DMEA Week 28 2022

DMEA COMMENTARY DMEA

Iran to increase

processing capabilities

amid upstream expansion

As Iran’s gas capacity reaches new highs, its downstream facilities must
work hard to keep the lights on at home.

MIDDLE EAST IRAN has announced plans to increase its slate offshore, though NIOC has begun exploration
of gas-based products with a view to ramping efforts to facilitate upstream expansion.
up exports. The news came just a few days after The South Pars deposit, which Iran shares
WHAT: details were revealed about condensate and with Qatar, covers an area of 9,700 square km
Iran has struggled with product supplies from one of the country’s key with Iran’s 3,700-square km portion that holds
winter gas shortages, gas facilities, with progress in the area key to around 14 trillion cubic metres of gas and 18bn
which is bearish for utilising, and potentially monetising via export, barrels of gas condensates. In Qatar, the gas asset
new or expanded gas increased upstream gas production, with capac- is known as the North Dome and is responsible
processing and refining ity hitting 1bn cubic metres per day last Iranian for the vast majority of the peninsular nation’s
facilities. calendar year. production.
Moazeni said that through “significant and
WHY: Condensate and products innovative measures”, more than 6.2mn barrels
Gas by-products are Speaking to the Ministry of Petroleum’s (MoP) were processed at SP refineries 4 & 5, with 566
highly valuable in export Shana news outlet, Shafi Moazeni, director of tonnes of ethane and 27,200 tonnes of propane
markets, but maintaining the fifth refinery at the South Pars Gas Complex also produced during this period.
reliable supplies is vital (SGPC) – a project company subsidiary of the He added: “More than 31,986 tonnes of
to business and investor National Iranian Oil Co. (NIOC) – said that the butane, 725,806 tonnes of gas condensate and
confidence. plant had supplied 6mn barrels of condensate 11,342 tonnes of granulated sulphur were also
during the last three months. produced during” Q1 of the current Iranian cal-
WHAT NEXT: The SGPC covers a large industrial area just endar year.
Increased upstream gas north of Asalouyeh. The Asalouyeh downstream
production will generate hub is the location of the 14 gas refineries that Expansion plans
sizeable volumes of new comprise the downstream portion of the South Meanwhile, Ahmad Bahoush, SGPC’s manag-
feedstock, but demand is Pars gas development. The project is split into ing director said that the recent completion of
likely to also be edging 24 offshore development phases and 14 onshore projects would raise output from the facility’s
upwards. gas refineries which process the gas produced gas and condensate processing plants. Bahoush

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