TEHRAN- Inauguration of the South Pars gas field’s phases 15 and 16 is a symbol of cooperation among different executive bodies and organizations in Iran and indicates the strong will of people.

“Inauguration of these phases means that sanctions could not impede our nation’s determination toward development and flourish of the country. Under the severe condition of sanctions, we put phase 12 into operation last year and now we are inaugurating phases 15 and 16,” President Hassan Rouhani said Monday in a ceremony to inaugurate the two phases in the port city of Assaluyeh, southwestern Bushehr Province.

He also said: “We are very glad that one of the objectives of the government in the energy sector is today materialized”.

*** Year of economic thriving

Rouhani further highlighted: “The Iranian government is proud of curbing the inflation even in the sanctions time. Despite all difficulties, our economy will witness growth this year and I also promise the Iranian people that the next year will be a year of flourishing economy by the sanctions removal and also through determination of our youth.”

“We should have a self-sufficient economy relying on the talents of our young people”, the president emphasized.

“Our progress should not be only in the oil and gas sectors. We should also achieve high successes in the fields of water, transportation, science and technology, industries, mines, and agriculture”, he noted.

*** Highest domestic equipment, expertise

Addressing the same ceremony, Oil Minister Bijan Namdar Zanganeh said development of phases 15 and 16 account for the most domestically manufactured equipment and also highest Iranian expertise among all phases of the gas field.

He said 67 percent of equipment and expertise used for the development of phase 12 (the largest phase of South Pars which came on stream last March) was Iranian, while the figure is 70 percent for the phases 15 and 16.

Western Europe, China, and Japan account for the remaining 30 percent, Zanganeh told the Tehran Times in a press conference before the inaugural ceremony and mentioned casing and tubing pipes and rotary machines as the main imported equipments.

It was a great step in the country’s self-sufficiency, the minister highlighted.

Further in his remarks, Zanganeh said gas transferring from the sea to the refinery of phases 15 and 16 started last June; adding that 15 million barrels of gas condensate and 16 million cubic meters of sweet gas per day (mcm/d) have been produced in these phases since then.

*** SP to bring $100b annual income

Completing all phases of the South Pars gas field will bring an annual income of $100 billion for the country, Zanganeh stated.

He said all phases of the field, except for half of the phase 14, are planned to be inaugurated by the middle of the next Iranian calendar year (late September 2016).

By putting all phases of the field into operation, the country’s gas output will reach nearly 700 mcm/d, the minister added.

*** Phases 15, 16 cost $5.5b

Addressing the inaugural ceremony, National Iranian Oil Company (NIOC) Managing Director Rokneddin Javadi put the worth of project to develop phase 15 and 16 at $5.5 billion.

The official said this project was the seven projects to develop South Pars phases.

It was started in June 2006 and now that the project is complete, phases 15 and 16 will produce 56 mcm/d of sour gas and 50 mcm/d of sweet gas as well as 75,000 barrels of gas condensate and 400 tons of sulfur per day, he added.

Javadi also said the phases will produce one million tons of ethane and one million tons of liquefied petroleum gas (LPG) per annum.

The NIOC managing director further said that South Pars gas field is one of the two main hubs of producing energy in the country.

*** Gas to replace liquid fuel in power plants

The amount of liquid fuel which is used as feedstock in Iran’s power plants is forecast to fall to less than 20 percent from the currently 46 percent by the end of this Iranian year (March 19, 2016), as the production of gas is being boosted in the country, Zanganeh stated in the press conference before the inauguration of phases 15 and 16.

The minister said inauguration of six phases in South Pars gas field over the past two and half years added 150 mcm/d of gas to the country’s gas output which has led to reduction of liquid fuel consumption in the country’s power plants.

Referring to a 180 mcm/d increase in the South Pars refining capacity, Zanganeh highlighted that Iran has achieved high capabilities in terms of refining over the recent years.

He said phases 17 and 18 of the field are also in the final stages of development.

Iran aims to nearly double gas production to reach one billion cubic meters per day in less than two and a half years.   

With its 34 trillion cubic meters of natural gas, Iran has the biggest gas reserves in the world.   

The country intends to enhance gas production by increasing foreign and domestic investment, especially in its South Pars gas field.      

South Pars field, which Iran shares with Qatar in the Persian Gulf, is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves.   

The huge offshore field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar’s territorial waters.