LNG, Iran Bargaining Chip Demand for Natural Gas Is Growing on the Global Scale
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MONTHLY Iran Petroleum Issue No. 73 July 2018 LNG, Iran Bargaining Chip Demand for natural gas is growing on the global scale. Over 20 years to come, the energy mix is set to tilt towards gas. Iran Oil ‘Unsanctionable’ In the run-up to November 4, when US President Donald Trump will restore sanctions on Iran’s petroleum sector, speculation is rising about the materialization of this decision. Ministry of Petroleum Islamic 38 Republic of Iran 46 Managing Editor: Kasra Nouri Director General of Public Relations Editor in chief: Parastoo Younchi Executive Editor: Hamid-Reza Shakeri-Rad Removing Iran Oil Graphic Designer: Saman Goodarzi from Market Photo Section, PR Office, MOP: Challenges and 48 Hassan Hosseini Consequences Reporter: Negar Sadeqi Javad Asghari Translator: Kianoush Amiri Coordinator: Abbas Lotfi Tel/Fax: (+98 21) 61626113 www.iranpetroleum.ir [email protected] Win-Win Kerman, Land West Karoun LNG, Iran SP Output Policy in of Historic Output Keeps Bargaining To Grow COVER Petchem Wonders Rising Chip 84mcm/d Sector 6 24 58 16 12 news MONTHLY IranPetroleum Iran Petroleum StopsKasra Nouri Print Edition, Goes Online If you have any comments Director General of Public Relations “Iran Petroleum”, the official English- will continue to be available online. language monthly of Iran’s Ministry of From now onward, “Iran Petroleum” regarding the articles in this magazine, please Petroleum, was launched in 2012 to will try to provide its readers with provide its readers with precise and the latest news on Iran’s oil and gas feel free to contact us through e-mail. authentic reports and information about and fulfill its obligation with regard policies, activities and achievements in to boosting interaction among Iranian Your views are appreciated the oil, gas, petrochemical and refining managers and their counterparts from industries. international companies in energy The monthly also sought to familiarize producing and consuming nations. its readers with the views of petroleum Those interested in reading about oil, industry managers through conducting gas and petrochemical industries of interviews with a view to preparing the Iran and the world may refer to www. ground for interaction and exchange of iranpetroeum.ir or they may receive the views between actors of this industry. digital edition of the monthly via email. In a bid to benefit from new Iran Petroleum still remains open to communications tools and help receiving suggestions and criticisms safeguard the environment, “Iran from its readers with a view to satisfying Petroleum” stops its print edition and its readers. PetroleumMinistry -PublicRelations Thank you for reading Iran Petroleum [email protected] 1 news July 2018 Issue No. 73 MONTHLY news The first EPC/D non- PGFKC. Addressing the “Supply and installation agreement,” said Alipour. He projects would significantly 1st EPC/D disclosure agreement has signing ceremony, Alipour of downhole and wellhead said that 320,000 b/d of oil contribute to job creation been signed between the said: “This agreement is pumps, drilling and was being produced from in Khuzestan Province. The Non- National Iranian South the first among contracts workover of six wells, Ahvaz production units 2, National Iranian Oil Company Oil Company (NISOC) and for the development of 28 pipelines, necessary 3 and 5. The completion (NIOC) has given green Disclosure Petro Gohar Farasahel reservoirs. overhaul of production units of project would raise oil light for the development Agreement Kish Co. (PGFKC). The ” He added that the project, and desalting, purchase, output by 42,000 b/d and of 28 reservoirs within the agreement was signed by which would start in installation and reparation avoid a decline of 35,000 framework of job-based Signed Bijan Alipour, CEO of NISOC, September and last two years, of turbines constitute b/d. Alipour said that the contracts in oil-rich areas in and his counterpart from would cost $300 million. some provisions in this 28 reservoir development southern Iran. Turkey to Keep Buying Iran Gas Transmission Oil & Gas Well Drilling SZOGPC Gas Output at Iran Gas Capacity at 260bcm at 69,000m 58bcm CEO of South Zagros Oil and Gas Production Turkey will continue importing gas from CEO of Iran Gas Transmission Company thatA deputy 60,377 head meters of the of Nationalonshore andIranian offshore Montazeri said the company produced more Iran despite Washington’s intentions to (IGTC) Saeed Tavakoli has announced that oilDrilling and gas Company wells were (NIDC) drilled has duringannounced the Company (SZOGPC) Gholam-Hossein reintroduce sanctions against Tehran, Iran’s gas transmission capacity has reached gas condensate and oil in the calendar year to Turkish President Recep Tayyip Erdogan 260 bcm a year. “The most important task than 58 bcm of gas plus 20.5 million barrels of said. “They imposed sanctions to Iran. What andassigned gas liquids to IGTC from is to domestic transmit andnatural foreign fourfirst fourmonths months of the of current the current [calendar] calendar happened? Did Iran collapse? When [former productiongas, ethane, originsliquefied to petroleumdomestic consumption gas (LPG) year,year (starteddrilling andMarch completion 21). “During of 53 the wells first March 2018. He said the products were worth U.S. President Barack] Obama told us back destinations and export terminals and also concluded and the wells were delivered productionequivalent of at 385 101% million and oil barrels production of oil. at then, I said ‘I am sorry, but we are purchasing He said that the company reached its gas natural gas from Iran. How else will I supply overhauls, Montazeri said more than 245,000 thisnatural attitude gas if they I cannot should buy not it?’” forget President they will theto swap Middle the East aforesaid and the products,” fourth in he the said. world developmentto clients,” Hamid-Reza wells, 3 appraisal Khosh-Ayand wells and persons-hours103% in the same of overhaul year. Touching was carried on SZOGPC out Erdogan stressed. “If the U.S. does not change Tavakoli said IGTC was ranked the first in 25said. workover He added wells, that notingthe wells that included 31 wells 25 on the production and processing facilities terms of pipeline extension, installations lose a sincere and strong partner like Turkey,” after the United States, Russia and Cana in intelligent pigging was conducted on more worldHurriyet is dependentDaily News on cited the him crude, as saying.a Chinese The company owns more than 36,000 kilometers were drilled in areas run by the National as well as pipelines. Furthermore, he added, US sanctions on Iran’s oil will not work as the ofand pipeline, telecommunications 81 compressor infrastructure. stations with The292 Iranian South Oil Company (NISOC), five turbocompressors, 9 gas export and import projectswells in areasof the run Petroleum by the Iran Engineering Offshore andOil andthan effective 150 kilometers acidizing of of pipe. seven wells, the analyst said. “The nations’ trade with each terminals as well as 600 telecommunications Company (IOOC), 10 wells in development “Owning to petroleum engineering initiatives other is based on their bilateral interests,” Wu Chenghui said, “They should not be forced by Development Company (PEDEC) and eight company saw its output grow 2.5 mcm,” he the US to avoid buying oil from Iran.” stations. wells within the framework of agreements. added. SP Development Picks Up Speed Meshkinfam also touched on CEO of Pars Oil and Gas sweetening trains in SP13 and of drilling operations, Company (POGC) Mohammad one sweetening train in SP22- have been made for choosing installationSP14, saying: of “After Platform completion 14B has Meshkinfam has given a 24 were already operational, contractorsout. “Necessary for load-out, arrangements made acceptable progress in positive assessment of offshore he said that the second train transfer, installation and launch and onshore development of sweetening would become of four new platforms in South operational by the end of the projects in the giant South Pars ISOICO Yard and will become said the platforms for SP13, development projects would SP14operational and SP24 soon. were Meshkinfam more Pars,” he added. Meshkinfam from[calendar] two gas year.” sweetening trains seegas field.acceleration He said in that the the coming SP than 90% ready, adding that said Platform 14A, which had inReferring SP13 and to a trial train production in SP22-24, the South Pars gas production been constructed at ISOICO he said that the second train earlier, recovery from SP13, capacity would increase by theYard operation in Bandar of Abbas, six new was gas of gas processing for SP22-24 SP14three andmonths. SP22-24 “As promised would platformsinstalled in would May. Heboost said the that would be ready for operation reach 3 bcf/d by the end of the said that one of ten platforms South Pars gas capacity by of progress in construction, with regard to drilling and current [calendar] year,” said 86 mcm/d by next March. He pre-commissioning and the other sweetening trains of installation and operation of commissioning of existing soon. Meshkinfam said that calendar year ends on March haswhich been Iran installed Marine whileIndustrial a platforms3 bcf/d (84 will mcm/d). be done The based on SP22-24pipelines ofGas these Processing platforms. would be online by the end of Meshkinfam. Iran’s current secondCompany one (SADRA) is ready is for building load- well as measures undertaken Train refineries in SP13 and SP22-24 platforms at SADRA Yard, as 4 20, 2019. Noting that two gas the client’s planning and in light the calendar year. 5 Interview July 2018 Issue No. 73 MONTHLY Interview Demand for natural gas is growing on the global scale. Over 20 years to come, the energy mix is set to tilt towards gas. Iran, sitting atop 18% of world gas reserves but holding a meager share in global gas trading, is striving to highlight its role as a LNG, Iran potential producer and exporter of liquefied natural gas (LNG).