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The largest phase of Iran’s South Pars gas field is set to begin production later this week

Phase 12 of Iran’s South Pars gas field is set to officially start operations before the end of the current Iranian year (March 20) in a ceremony that will be attended by President Hassan Rouhani, Fars News reports. Ali Akbar Sha’banpour, Managing Director of South Pars Oil and Gas Company, said Phase 12 will exploit three billion feet of sour gas from the seabed, equal to 84 million cubic meters (MMcm), and after separating its gas derivatives, injects 75 MMcm of sweet gas to the trans-Iranian gas pipeline network.

According to Petropars, the company operating the project, the gas will be produced from four wellhead platforms with 45 wells drilled-in. Phase 12 is located in the south eastern block of the South Pars field, on the border with Qatar. The project’s total area is 128 square miles, located approximately 96 miles from Iran’s coastline. The project cost more than $7 billion to implement and is expected to generate $10 billion annually, which accounts for 3%of the country’s GDP, reports Tehran Times.

This phase of South Pars is expected to start producing at least 500 Mcf/d of gas before the cold season starts for injection into the national pipeline. Of the 75 MMcm of gas expected from the project, 25 MMcm will be injected into the national pipeline, while the rest will be used for LNG production. The project is also expected to produce 120 MBOPD of gas condensate and 750 tons of sulfur per day. Both the condensate and sulfur production will be exported, according to Petropars.

South Pars is divided into 29 phases, containing 14 trillion cubic meters (Tcm) of natural gas, about 8% of the world’s reserves, and more than 18 billion barrels of LNG resources. Phase 12 represents more than nine years of work, according to Sha’banpour.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.