Oil Ministry to Invest $4.5 Billion in Fars Gas Development

EghtesadOnline: The Oil Ministry is to invest $4.5 billion for the development of the upstream gas sector in the Fars Province, the oil minister said on Thursday while visiting the southern province.

News ID: ۷۸۷۱۵۲

16 October 2021

“Fars, the second biggest holder of gas reserves in the country after Bushehr Province, has a daily production capacity of 114 million cubic meters of natural gas,” Javad Owji was also quoted as saying by the Oil Ministry’s news agency Shana.

Emphasizing that no investment has been made in the upstream and downstream sectors of gas fields and refineries in recent years, he said, “The Oil Ministry plans to invest in the upstream gas sector, including the fields of Phase 11 of South Pars Gas Field, Aghar and Dalan, Shanol, Tabnak, Homa and Varavi, for increasing pressure and developing new gas fields.”

Referring to the 13 gas fields in Fars Province, of which six fields have been developed so far, the minister noted that with the development of other seven fields, over 110 million cubic meters will be added to the province's daily gas production capacity.

“The average daily gas output capacity in Fars is 114 million cubic meters. The figure will reach 230 million cubic meters per day when the development of other gas fields is completed,” he said.

Speaking about Farashband Gas Refinery in the province, Owji said the development of the second phase of the refinery is on the agenda and within the next three to four years, its output capacity is expected to reach 65 million cubic meters per day from the current 42 mcm/d.

Farashband Gas Refinery is located in Farashband County, Fars Province. The refinery receives its feed from Dey, Sephid Zakhor and Aghar fields.

Raising Aghar Gas Field Output

According to Owji, programs are underway to increase the daily natural gas production capacity at Aghar Field by 20 million cubic meters.

Aghar is among the large onshore gas fields of Iran, located 110 kilometers southeast of Shiraz in Fars Province.

Gas production from Aghar began in 1999. Natural gas and condensates are separated after production for delivery to Farashband Gas Refinery for processing via two (90 km-long) pipelines.

The field’s expansion involves the drilling of six new gas wells and installation of a compressor system to lift natural gas recovery rates to almost 71%.

South Zagros Oil and Gas Production Company, affiliated to the Iranian Central Oil Fields Company, will carry out the development program.

In tandem with the plan to raise output, infrastructure will be built near the Farashband refinery for processing.

Based in Shiraz, SZOGPC is in charge of fields in five southern provinces, namely Fars, Bushehr, Hormozgan, Kohgilouyeh-Boyerahmad and Chaharmahal-Bakhtiari.

Established in 1999, ICOFC, a subsidiary of the National Iranian Oil Company, is one of the five major companies that supplies close to 40% of Iran’s domestic gas.

It is responsible for the production of gas and oil from 76 reservoirs, comprising 45 gas fields and 31 oilfields.

The systematic growth in domestic consumption plus gas supply expansion programs across the country have compelled the Oil Ministry to permanently concentrate on programs to raise gas production.

With the development of gas fields becoming a permanent feature of the ministry, average gas production has reached 1 billion cubic meters per day.