Iran to invest $600 million to extract gas-oil from natural gas

Oil&Gas Materials 25 July 2011 16:06 (UTC +04:00)

Azerbaijan, Baku, July 25 /Trend/

Iran will launch first GTL factory to extract gas-oil (diesel) from natural gas and will invest $600 million on GTL (Gas To Liquid) industry, Mehr News Agency reported quoting Deputy Industry Minister Majid Hedayat as saying.

"Iran commenced designing its first GTL factory and the pilot project will be tested in next 15 days," he said.

The factory on industrial city of Abbasabad in Tehran will start experimental production for three months, he added.

Design of GTL industrial unit by production capacity of 10,000 barrels is predicted to complete in next seven months.

The government plans to develop GTL industry by construction of 100 units, he noted.

Iran holds 33.1 trillion cubic meters of natural gas reserves. The country previously reviewed the construction of GTL units in Fajr Jam refinery, South Pars refineries and Phase 14 of South Pars.