Iran’s giant gas project set to start up

Iran said on Saturday that operations to develop its biggest natural gas project in South Pars energy hub are almost over. It says the project – South Pars Phase 12 – will be launched within the next few weeks.

Roknoddin Javadi, the managing director of the National Iranian Oil Company (NIOC), said the sixth train of Phase 12 joined the national grid on early Saturday. This, Javadi added, has now put the onshore treatment plant of Phase 12 into full swing.

He said the final touches are currently being made to the project, adding that Phase 12 will be officially launched in early March.

The target production of the project is 81 million cubic meters of gas (mcm) as well as 120,000 barrels per day of condensates. The gas produced at the project will be injected into the Iran Gas Trunkline 6 (IGAT6).

Iran’s Petropars won the contract worth $7 billion to develop Phase 12 in 2005. It was originally planned to be made operational last March, but was delayed as the result of a series of problems – most importantly the US-led sanctions.

Iranian officials earlier said the value of products produced at Phase 12 will be above $300 million per month.

South Pars is one of the world’s largest gas reservoirs. It is believed to hold an estimated reserve of 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of condensates. Iran shares the field with Qatar – which calls it the North Dome. The Iranian section of the huge field has been defined into 29 projects or phases. About half of the phases have already been completed and operations to bring the rest on stream are currently underway.