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Iran completed an $11 billion expansion of the giant South Pars. part of the world`s largest natural gas field. boosting output by more than 100 million cubic meters a day with President Hassan and oil minister Bijan Zanganeh attending opening ceremonies on Sunday.
Four phases launched Sunday in the offshore gas field in the Persian Gulf will increase production by 112 million cm d and be used for domestic consumption. according to the oil ministry`s news service Shana. That will add to existing South Pars output of 610 million cm d. and a domestic total of 841 million cm d. Qatar shares the gas field with Iran and now Iran has taken over for Qatar as the world`s largest producer of natural gas. Zanganeh told reporters Saturday night. according to Shana.
South Pars is of growing importance to Iran`s economy. with gas condensates and products from the field growing 15% by value and 9% by volume in the 30 days ended February 19. according to state news agency Islamic Republic News Agency.
Buyers range from the UAE to Norway. China. India and Belgium. The country`s total gas production capacity will rise to 950 million cm d by 2020. with South Pars at 750 million cm d. Zanganeh said in a speech. according to Shana. Iran is ready to export gas to Oman. he earlier said.
About 152.000 barrels day of gas condensates will be produced from the South Pars expansion to feed the Persian Gulf Star refinery to make gasoline. gas oil and other derivatives. according to Saeed Mohammad. commander of Khatam al Anbiya. the general contractor for the four phases. The expansion will also produce 5.800 mt d of LPG. 5.500 mt d of ethane and 800 mt d of sulfur. he said on state television.
With the inauguration on Sunday. South Pars has just two phases left to be developed out of 28. That Iran was able to complete the last four phases is all the more remarkable considering US sanctions that started last year.
Rouhani in a televised speech at the opening ceremonies called the sanctions `crime against humanity.`
`We have used Iranian-made equipment… in high-tech products. In the operation and commissioning. we used 100% Iranian content. The procurement was 70% Iranian.` commander Mohammad said on state television.
`The compressors that we had bought from Siemens were built and sent to us. In the middle of the shipping. they called back the cargo. Fortunately. we handed the job to Iranian manufacturers and received good result.`
Phase 11 has been delayed for more than a decade due to US sanctions. France`s Total. the last developer of phase 11. pulled out of the project last year because of the sanctions.
On Saturday. Zanganeh said Chinese officials are planning to visit Iran soon to make a decision about their role in phase 11.
`A high profile Chinese delegation is due to come to Iran for negotiations.` he said. according to semi-official Tasnim news agency. `With the visit of the Chinese delegation. we will decide on the fate of South Pars phase 11.`
China`s CNPC had a 30% share of the phase 11 development led by Total. The French company`s 50.1% share was automatically transferred to CNPC when Total had to back out. CNPC has not officially said whether it will take over development or also drop out because of sanctions.
Iranian company Petropars also has a 19.9% interest.
Phase 14. about 70% complete. is due to partially go on stream this summer and be fully operational within two years.
Once South Pars gas phases are complete. Iran`s gas output will reach 1.2 billion cm d. The production will help Iran to raise its share of global gas exports from 1.5% to at least 10%. according to Shana. Iran currently sells gas to Turkey. Iraq. Azerbaijan and Armenia.
