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Iran will participate in Asia’s LNG race through a huge North Slope development project

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Simon Watkins is a former foreign exchange trader and salesman, financial news reporter and best-selling author. He used to be the head of sales and trading of foreign exchange agencies, responsible for…
With Asian spot liquefied natural gas (LNG) prices rising to unprecedented levels in January and the outlook remains very strong, Iran believes that it is time to fully advance its long-term strategy of becoming the world’s leading LNG supplier. The focus will be on the North Pars non-associated natural gas field, which was Iran’s largest natural gas reservoir before the South Pars super-large oil field was discovered in 1990. This is very beneficial to the development speed of North Pars, not only that the price of LNG will remain at the historical high end, but Iran has actually completed all stages of the development of South Pars.
The North Perth Gas Field is located about 120 kilometers southeast of Bushehr Province and has about 59 trillion cubic feet (about 1.67 trillion cubic meters) of natural gas. According to conservative estimates, the recoverable amount of natural gas is about 47 trillion cubic feet. The gas itself is dilute acid, and the ratio of condensed gas is 4 barrels per 1,000 cubic feet (0.64 cubic meters), which contains about 6,000 parts per million hydrogen sulfide and 5% carbon dioxide. Working closely with the Iranian Ministry of Petroleum, specifically told OilPrice.com last week. The first design in this area was approved in 1977, but after 17 wells were drilled and 26 offshore platforms were installed, the active development of North Pars was blocked due to the Islamic Revolution in the country in 1979 and the subsequent war with Iraq. Paused. From 1980 to 1988.
Iran’s recent internal research in the northern state of Pars determined that the gas field is still in a highly viable state and can quickly promote the production of large amounts of natural gas-specifically, less than 100 million cubic meters (mcm/d) of natural gas per day is insufficient After 12 months of proper development-all recovered natural gas must be transported to produce at least 20 million metric tons (mtpa) of LNG per year. This is the LNG figure in the first 12 months of the development phase of Perth in the north, but even compared with the 77 tons of annual output of the world’s largest LNG country and Iran’s neighbor Qatar, its annual output is still considerable. . Although Qatar will increase this production to 110 tons per year, Iran will not only further develop the northern Pers region, but also develop many other major gas fields including many other major gas fields. The LNG market is immediately Golshan, Ferdowsi , Farzad A and Farzad B, and Kish. It should not be forgotten that the main areas from which Qatar obtains natural gas to maintain its status as the world’s largest LNG exporter are exactly the same as the 9,700 square kilometer reservoir from which Iran draws most of its natural gas: the northern part of Qatar’s 6,000 square kilometer side oil field is North. The dome, and Iran’s 3,700 square kilometer side is South Pars (North Pars is considered another location).
After the development was interrupted, in September 2006, China’s China National Offshore Oil Corporation (CNOOC) and the National Iranian Oil Company (NIOC) signed a memorandum of understanding to develop the North Pars site. It was then expanded in December 2006 to combine the development of four-column LNG facilities with a development capacity of 20 tons per year. Later, when it turned out that the development of China and Iran was slow, but before the US and EU imposed sanctions on Iran in 2011/12 to force the suspension of the project, the German chemical giant Linde Group had completed 60%. The US$3.3 billion flagship LNG export facility near the port of Tombak. The facility is expected to produce at least 10.5 mtpy of LNG, which is expected to be completed in less than a year. After the sanctions were lifted again in 2016, Iran granted Linde the liquefaction process. The first two trains of the facility intend to use the liquefaction process. At that time, it signed the first petrochemical cooperation agreement between Iran and Germany and became “Sweetener” contract. Front end engineering design (FEED) contract for Kian Petrochemical’s olefin unit.
Iran has also been planning to build floating LNG facilities, especially near Europe. It has reached a principled agreement with Eni of Italy and Cepsa of Spain to obtain oil and liquefied natural gas from Iran. Iran and Greece’s state-owned natural gas supplier Depa is discussing similar plans to form a new company that will build and operate a floating LNG storage and regasification facility in Alexandroupolis in northern Greece And the expansion of the Revythousa regasification terminal near Athens is regarded as a potential entry point for Iranian natural gas. Both of these facilities would have been connected to two international pipeline systems: the Trans-Adriatic Pipeline and the Greek-Bulgarian gas interconnection network. In fact, the scale of Iran’s original LNG plan can be measured from the following facts: Before 2011/12, it was negotiating with a number of international oil companies on LNG-related projects, including Total, Petronas, Repsol and Royal Dutch Shell, all These countries have reached an agreement with Iran, which is part of its fourth “National Five-Year Development Plan” (2005-2009), which aims to start from North Pals, South Pals, and Ferdo The Xihe Gaoshan natural gas field produces 70 mtpy of LNG. Related: Bloomberg’s hottest energy picks of 2021
After the expansion of sanctions in 2011/12, European companies have become more vigilant about participating in such projects with Iran, which is understandable, although this silence was temporarily suspended after the implementation of the Joint Comprehensive Plan of Action (JCPOA) in January 2016. Weakened, but little progress was made before the United States imposed sanctions again after the United States unilaterally withdrew from the JCPOA in May 2018. During this period, Iran has been developing a plan to make progress on its LNG plan by establishing a “small LNG” network. Build a complex with the help of South Korea. At the end of 2018, South Korean Minister of Land, Infrastructure, Transport and Tourism Kim Hyun-mee agreed to cooperate with Iranian Petroleum Minister Bijan Zangeneh on the fine points of LNG cooperation, including the first 8 billion euros provided by the Export-Import Bank to Iran. The credit line and 2.3 billion euros from two other Korean companies. These small LNG installations have an annual production capacity of 2,000 to 500,000 tons of LNG, while typical large plants have an annual production capacity of 2.5 to 7.5 million tons. In contrast, their relatively quick start-up and locationability will benefit them a lot. . Almost anywhere, even in very remote gas fields. Without these local LNG facilities, Iran is considering using approximately 25% of Oman’s total annual production capacity of 1.5 million tons of LNG at the Qalhat plant as part of a broader plan to build a 192-kilometer-long 36-inch pipeline from Mobarak Mount (Mobarak Mount) in Hormozgan Province in southern Iran arrives at the Sohar port in Oman, which is 1,340 meters deep along the Omanian seabed.
However, as U.S. sanctions were firmly restored in 2018, Oman withdrew from the plan and Russia’s Gazprom would replace Iran’s LNG plan, which signed two memorandums of understanding with NIOC, which involved Implement a dual joint strategic gas on the following aspects. The first part involves the natural gas cooperation roadmap between the two companies, and the second part details the Iranian LNG facilities built in cooperation with the Iranian Oil Industry Pension Fund. Initially, this will enable Gazprom to effectively take over 60% of the existing complete LNG complex from Linde, and later it will become an indispensable part of the construction of the micro LNG complex. Gazprom will pay for its work from the sale of natural gas in the complex and part of the output from the oil fields that supply it. However, due to increased US sanctions against Iran and Russia, the relatively poor outlook for global LNG prices, and China’s renewed interest in participating in LNG projects as part of it, these plans were once again shelved. Reach a broader 25-year agreement with Iran.
At the time, it was estimated that the North Pars LNG development would require approximately US$16 billion in investment for at least the first phase, including US$5 billion in the upstream sector and US$11 billion in the downstream sector (mainly LNG plants). The LNG production is at least 100 mcm/d, and 46 wells need to be drilled. This is still the basic figure that Iran is working on. The Ministry of Petroleum and NIOC are now considering the North Pars site as the focus of a new and larger energy hub, focusing on the production of LNG. Iranian sources said that this will allow international state-owned companies to participate in a series of projects to combine their South Pars operations with North Pars operations.
Simon Watkins is a former foreign exchange trader and salesman, financial news reporter and best-selling author. He used to be the head of sales and trading of foreign exchange agencies, responsible for…
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Post time: Mar-06-2021