Prospects improve for pipeline natural gas exports by Iran

A new petroleum minister and an easing of international sanctions raise prospects for new pipeline exports of natural gas by Iran, according to Facts Global Energy (FGE), London.

Petroleum Minister Bijan Namdar Zanganeh has appointed experienced people to administrative positions and made completion of stalled phases of offshore South Pars gas field a priority, FGE says in a December report.

If controversy over the Iranian nuclear industry is settled, the Islamic Republic has the potential to export 3-4 bscfd of gas by pipeline to neighbors such as Oman, the United Arab Emirates, Kuwait, Pakistan, and Iraq, the report concludes. Prospects for LNG exports, however, are nil.

South Pars progress

Supergiant South Pars field now can produce about 9 bscfd of gas from 10 phases and has 14 phases under development. All but five nonproducing phases are in early stages and unlikely to be on stream before 2020, FGE reports. Likely to come onto production in the next 3-4 years are Phases 12 and 15-18. They would boost production by 7 bscfd and 280,000 b/d of condensate.

Phase 12, development of which is the most advanced of the five, ultimately will be 3 bscfd of gas and 120,000 b/d of condensate. The first of six sweetening trains for Phase 12 will start up by mid-2014, FGE says, allowing production of 500 MMscfd. Other trains will be on stream by 2015.

National Iranian Oil Co. has installed the first production platform in Phase 12 and drilled six wells.

Phases 15 and 16, under development for 74 months, probably will require 2 more years of work before production can start, FGE says. They’re expected to produce 2 bscfd of gas and 80,000 b/d of condensate.

Phases 17 and 18 have a total of 11 wells out of 44 wells planned. Remaining drilling will take at least years, FGE says. One gas sweetening train for these phases might be complete next year, but construction of others will require 2-3 years. The phases are expected to produce 2 bscfd of gas and 80,000 b/d of condensate.

Oman and Iraq

Under a memorandum of understand recently signed with Oman, Iran is to start exporting within 2 years as much as 1 bscfd of gas by pipeline to the sultanate, which will use 70% of it domestically and the rest for liquefaction at an underutilized plant at Sur.

FGE believes Iran will be unable to complete infrastructure required to support the Omani exports before 2018-19 at the earliest. It says the countries haven’t yet agreed on the gas price, which Iran wants to be $11-14/MMbtu while Oman seeks $6-7/MMbtu.

With Iraq, Iran has a contract to deliver by pipeline 850 MMscfd of gas and is negotiating a second contract that would push export rates to 1.6 bscfd by next year. It’s building a 227-km, 48-in. pipeline between Ilam and Khosravi near the border. Iraq is building a 220-km, 42-in. pipeline to deliver gas to power plants near Baghdad, but completion has been delayed by security problems.

Iran also is negotiating for construction of a pipeline connecting Khoramshahr, Iran, with Basrah, in southern Iraq, for delivery of 700 MMscfd.

The price of Iranian gas sold in Iraq remains contentious.

Demand and exports

FGE notes a decline in growth of Iranian gas consumption, partly because of price reform begun in December 2010 and partly because of economic problems.

Sanctions by the US and European Union caused the Iranian economy to contract by an estimated 1.9% in 2012 and an expected 1.5% this year. FGE says Iranian industry is operating at 40-50% of capacity.

The Petroleum Ministry nevertheless projects a 1 bscfd gas shortage this winter. Recent agreements increase Iran’s export commitments to more than 2.7 bscfd in 2014-15.

“Considering more delays in South Pars development projects,” FGE says, “it is unlikely that Iran will achieve this targeted export level in the short term.”

LNG export plans have fallen victim to sanctions and withdrawals by international partners and technology providers. FGE doesn’t expect Iran to export LNG but says the lifting of all sanctions might enable the government to reorganize a project called Iran LNG, which envisioned two liquefaction trains with total production capacity of 10.8 million tonnes/year.

Related Articles

PAA to expand Delaware basin crude pipeline systems

02/05/2015 Plains All American Pipeline LP (PAA) plans to build two Delaware basin crude oil pipelines and related gathering systems, to expand its existing B...

Alberta’s premier seeks more North American energy integration

02/05/2015 Better policy integration and cooperation will be needed for Canada, Mexico, and the US to fully realize the North American energy renaissance’s po...

Oil, gas infrastructure investments essential, House panel told

02/04/2015 Investments in oil and gas transportation and storage should move ahead because they are essential in continuing the US economic recovery and North...

Inpex starts development drilling at Ichthys field

02/04/2015

Inpex Corp. has started development drilling in Ichthys gas-condensate field in the Browse basin, about 200 km offshore Western Australia.

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

Live Oak LNG to build Calcasieu Ship Channel liquefaction, export site

02/03/2015 Live Oak LNG LLC, a subsidiary of Parallax Energy LLC, Houston, will invest $2 billion to develop a 5-million tonne/year liquefaction plant and LNG...

EPA suggests DOS reconsider Keystone XL climate impact conclusions

02/03/2015 The US Department of State might want to reconsider its conclusions regarding potential climate impacts from the proposed Keystone XL crude oil pip...

EnLink agrees to purchase Coronado Midstream for $600 million

02/02/2015 EnLink Midstream has agreed to acquire Coronado Midstream Holdings LLC, which owns natural gas gathering and processing facilities in the Permian b...

So much for cooperation

02/02/2015 Congressional majority leaders and the Obama administration came into 2015 pledging to at least try to be less combative and more cooperative in ru...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected