Iran to raise South Pars output by 20+ per cent

Managing Director of Pars Gas & Oil Company Ali Akbar Sha’banpour said on 22 August that the company aims to raise output from the South Pars joint gas field with Qatar to 530m cubic metres a day (cmd) next spring from 430m cmd now, the Irna newsagency has reported.

Iran aims to increase output from the Iranian share of the field to match Qatar’s production in 2017.

Sha’banpour said $55bn has been invested in South Pars, the world’s largest non-associated gas field. A further $11bn is to be invested in the field.

Iran’s gas production this summer reached 735m cmd. About 35m cmd is flared and about 90m cmd is reinjected to maintain oil well pressure.

The head of the National Iranian Gas Company for international affairs Azizollah Ramazani was quoted by Irna in July as saying that that Iran will start exporting gas to Iraq in August.

Iran aims to export up to 80bn cubic metres a year of gas by 2020. Of this, 50bn cubic metres will go to Iran’s neighbors. Up to 30bn cubic metres will will go to EU countries. Ramazani said 10 out of Iran’s 15 neighbouring countries have the capacity to import Iranian gas. Plans call for gas to be exported to India, China, Japan and South Korea

Tehran has gas export contracts with Iraq, Pakistan, Oman, and Turkey for a total of 126cmd of gas. Turkey was until the start of deliveries to Iraq the only one of the four receiving Iranian gas.

For full coverage of Middle East business, see MEED.