South Pars Raises Gas Condensate Output

EghtesadOnline: Gas condensate output from the South Pars Gas Field in the first 10 months (March-Dec 2019) of the currency fiscal year increased by 5% compared to the corresponding period a year ago, managing director of South Pars Gas Complex said.

News ID: ۷۴۹۷۲۶

18 February 2020

Output data shows 5% or 10 million barrels growth in 10 months and the company so far has produced 205 million barrels, ISNA reported Hadi Hashemzadeh Farhang as saying.

Natural gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in raw natural gas produced from gas fields, Financial Tribune reported.

As Iran increases gas output (now 870 million cubic meters per day and expected to reach 1 billion cubic meters a day soon),  gas condensate production also rises.

SPGC accounts for 67% and 92% of total natural gas and gas condensate output, respectively.

South Pars is the world's largest gas field shared between Iran and Qatar. It is developed in 24 phases of which 23 are operating.

The field is estimated to contain large deposits of natural gas, accounting for about 8% of the world’s reserves, and approximately 18 billion barrels of condensates.

Over 685,000 barrels of gas condensate per day is produced at the SPGC, a major part of which is supplied to Persian Gulf Star Refinery in Hormozgan Province and Nouri Petrochemical Complex in southern Bushehr Province as feedstock to produce value-added products.

Gas condensate is also offered on the international ring of the Iran Energy Exchange.

Since last year the Oil Ministry has been obliged to offer 2 million barrels of light crude, 2 million barrels of heavy crude oil plus two million barrels of natural gas condensates on IRENEX on a monthly basis.

Buyers can receive the cargo either at Kharg Island terminal off the Persian Gulf for sea delivery or at petroleum storage tanks in Bandar Abbas for land delivery.

Offering crude oil and petroleum products on the energy market is part of government efforts to involve the private sector and international companies in the oil industry, which has long been under government control.

However, the National Iranian Oil Company has temporarily halted selling two petroleum products, diesel and mazut, on the IRENEX due to the big increase in liquefied fuel consumption over the last few weeks (mostly in power plants). The NIOC will resume selling them in the energy bourse when consumption declines.

Since the US withdrew from the landmark nuclear deal in May 2018, vowing to drive Iran's oil and its products exports to zero, Iran has been taking a variety of measures to counter the open US hostility.