South Pars Phase 2 & 3 Onstream

Iran has brought phases two and three of its giant South Pars gas field on stream. Approximately 20 gas wells have been drilled in the two phases and 55 million cubic meters of natural gas are being injected into the national gas network, according to Iranian Oil Minister Bijan Namdar Zanganeh. This will bring in an estimated $1.5 billion in revenue. The gas produced by the two phases would be worth about $2 million a day if calculated at 3-4 cents a cubic meter, the low end of its potential price range. Analysts say the upper end of the price range would be around 9 cents/cm. There are also around 85,000 barrels of gas condensates being produced at the two phases which will bring around $2.5 million in revenues if sold at their average price of $25 a barrel.

Phase two and three called for the construction of two offshore platforms and four 65-mile pipelines. Anonshore gas processing refinery linked to these two phases is operational in the Pars special economic zone at Assaluyeh, in the southern province of Bushehr. The two phases will also produce around 1 million tons of liquefied petroleum gas a year, with a projected annual revenue of $250 million.