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Iran to allocate $600 mln to Kharg NGL project from National Development Fund

Business Materials 6 September 2014 17:53 (UTC +04:00)

Tehran, Iran, Sept. 6

By Milad Fashtami - Trend:

Iran plans to allocate $600 million from the National Development Fund for the construction operation of the Kharg NGL project in Iran's southern Kharg Island.

Managing Director of Iran's Offshore Oil Company Saeed Hafezi said the project needs $2.1 billion to come on steam, IRNA news agency reported Sept. 6.

"The project is currently 45 percent complete," he explained.

Iran's Shana news agency reported on May 28 that the country plans to invest $11 billion in construction of ten natural gas liquid (NGL) production units.

Once the units come on stream, over 2,600 million feet of gas produced in oil fields will be gathered and processed.

The units' final products are scheduled to be fed to Bandar Imam and Mahshahr Special Economic Zone's petrochemical units, as well as new petrochemical units such as Dehloran.

Iran is the second largest proved natural gas reserve holder in the world.

According to Oil & Gas Journal, as of Jan. 2014, Iran's estimated proved natural gas reserves were 1,193 trillion cubic feet, second only to Russia.

Iran holds 17 percent of the world's proved natural gas reserves and more than one-third of OPEC's reserves.

Iran has a high success rate of natural gas exploration in terms of wildcat drilling, which is estimated at 79 percent compared to the world average success rate of 30 percent to 35 percent, according to FGE, an international energy consultancy.

According to BP's latest yearly report, Iran's dried gas output is about 160 bcm, a little more than domestic consumption level.
Iran exported 7.5 bcm of gas to Turkey and imported 4.5 bcm of gas from Turkmenistan in 2012, according to BP's report.

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