Page 5 - DMEA Week 28 2022

DMEA COMMENTARY DMEA

highlighted new LPG export facilities and a sul- will continue to grow as Iran pushes to raise gas
phur export dock and natural gas sweetening production. The MoP’s Planning Directorate
and storage units at the South Pars 2 site. published a report last week that upstream gas
Bahoush said that SGPC had processed more production had exceeded 1 bcm per day during
than 253mn barrels (693,000 barrels per day) of the previous Iranian calendar year, which fin-
condensate alongside 195bn cubic metres of gas. ished on March 20.
The Phase 14 refinery was launched in March This came largely on the back of a 4% annual
with a processing capacity of 14.2mn cubic increase in output from South Pars, which
metres per day of gas and around 10,000 bpd of reached 705 mcm per day in December.
condensates. For Iran, one of the world’s largest consumers
It will gradually ramp up to more than 56 of gas, increased flows are key to satisfying local
mcm per day once the remaining three refining demand, while also maintaining exports to Iraq
units are commissioned by the end of Q1 2023. and generating large volumes of petrochemi-
Last year, NIOC’s deputy director for produc- cals and fuels for domestic and international
tion affairs, Farrokh Alikhani, said: “Due to ris- consumption.
ing gas consumption in the country and in order With South Pars almost now at capacity –
to prevent gas shortage in winter, the launch of Phase 11 will reach 19 mcm per day by the end
Phase 14 refinery is very important.” of Q3 before ramping up to its 56 mcm per day
It features six water boilers that each produce capacity next year – NIOC subsidiaries Pars Oil
around 27 tonnes per hour of steam which were & Gas Co. (POGC) and Petropars have begun
built by the local MAPNA Group. expanding their exploration efforts while explor-
The upstream phase 14 has a production atory drilling has also started at the Belal gas
capacity of 56 mcm per day of gas, 75,000 bpd of field.
condensate, 400 tonnes per day of sulphur and The companies signed a buyback contract for
a combined 1mn tonnes per year (tpy) of LPG Belal in 2019, envisaging gas production of 14
and ethane. mcm per day within 34 months. That period was
The LPG and ethane are used as feedstock extended owing to issues caused by the corona-
by petrochemicals producers in the Pars Special virus COVID-19) pandemic and ongoing issues
Economic Zone (PSEZ). related to US sanctions.
Bahoush highlighted South Pars’ importance While international attention often turns to
to Iranian consumption. “Currently, the SPGC’s Iran’s ability to pump and export oil, domesti-
share in the country’s gas production is more cally, gas is of at least equal importance, particu-
than 75%, and with the production and export larly in winter months. Last year, the country
of by-products such as propane, butane, gas con- faced shortages despite extensive work having
densate and granulated sulphur, this complex gone into maintaining production units ahead
plays a very strategic role in the supply of such of demand peaking.
important products as well.” As Iran pushes to increase the uses of its gas
– and the markets into which it can be sold as
Gas uptick chemicals or fuels – higher gas capacity will be
Demand for these processing and refining units required.™

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