Siri NGL project to save Iran $1 mln daily

Iran Materials 7 December 2011 17:18 (UTC +04:00)

Azerbaijan, Baku, Dec. 07 / Trend F.Milad/

By commissioning the Natural Gas Liquids production unit at the Siri Island, located in southern Hormozgan Province, by the end of the current calendar year (March 20, 2012), Iran will save around $1 million per day out of not burning gases associated with oil, the ISNA news agency reported.

The project, named Siri Associated Gas Gathering and NGL Recovery Project, which was launched in 2003 should have been completed by 2008, but it has been delayed due to financial problems.

The Siri NGL project includes Siri to Qeshm pipeline, Siri to Kish pipeline, Siri NGL plant, and Kish gas pressure boost station that are estimated to cost $450 million.

The NGL plant is projected to produce 841 tons of propane, 328 tons of butane, 361 barrels of pentane, and 1,250 barrels of gas condensates per day.

Some $15 billion cubic meters of associated gas is burnt at Iran's oilfields, bringing the country around $3 billion of loss annually.

Since 2001, Iran's annual imports of gas have been more than exports by nearly 71 billion cubic meters on the average, the Pana news agency reported. Iran is the second major holder of gas deposits in the world.