Persian LNG is the LNG project in Iran. It has been defined based on the huge reserves of the South Pars gas field. Royal Dutch Shell and Repsol had been originally awarded phases 13 and 14 but were left out of the project by Iran due to their repeated delays.[1]

Technical description

Persian LNG project consists of development of phases 13 and 14 of South Pars Gas field and construction of two LNG trains each with capacity of 8.1 million tonnes per year.

The plant will be located in Tombak port (950 km North West of Asaluyeh and 15 km South East of Kangan) and will be connected with South Pars by 135 kilometres (84 mi) long subsea pipeline with diameter of 32 inches (810 mm).[2][3]

Initially the project will be implemented in two phases:[4]

  • Phase 1 consists of one train of LNG with the design capacity of 8.1 MTPA and 1.04 MTPA of LPG with 2 parallel gas treating units, 2 NGL extraction and fraction units and 1 liquefaction unit.
  • Phase 2 of the project consists of 2 trains with the design capacity of 8.1 MTPA of LNG per train and total LPG 1.56 MTPA with 3 gas treating units, 3 NGL extraction and fractionation units and also 2 liquefaction units.

Liquefaction process will be based on the Shell-Double Mixed Refrigrant (DMR) Process.[5]

The project is expected to cost US$10 billion and the LNG plant is expected to be commissioned by 2012.[6] The project is in FEED stage and final investment decision is to be taken by early 2008.

Project company

Project is a partnership of;

According to the Royal Dutch Shell plc Annual Report 2007, In early 2007, Shell and Repsol entered into a service contract with respect to development of the South Pars fields for the Persian LNG project. However, the parties will not reach a final decision on whether to proceed with the project until the remaining significant commercial and engineering work is complete.[7]

Repsol YPF in its 2004 Annual Repost indicates that, Repsol YPF and Shell signed the Service Contract in January 2007 for the Persian LNG project, which contains the conditions for exploration and development operations in phases 13 and 14 of the South Pars field. The production of these phases would supply a future LNG plant, which would have two liquefaction trains, each with a capacity of 8.1 million tonnes per year. In addition to Repsol YPF, both Shell and NIOC participated in the project. The Final Investment Decision (FID) on the liquefaction plant and the commencement of exploration and development operations, have not yet been made.[8]

Royal Dutch Shell and Repsol had been originally awarded phases 13 and 14 but were left out of the project by Iran due to their repeated delays.[9]

Supply source

According to the SHANA (NIOC official news agency), South Pars gas filed phase 13 will be replaced by other phases in order to implement Persian LNG project.[10]

In May 2008, project partners has agreed the principle of substitution of alternative later phases for the Persian LNG project so that the National Iranian Oil Company can proceed with the immediate development of phase 13. [11]

It is reported that The two firms want to exchange their participation in bloc 13 for a role in bloc 20 or 21 due to rising development costs. [12]

See also

References

  1. http://www.presstv.com/detail.aspx?id=130529&sectionid=351020103
  2. "Shell says to take politics into account on Iran deal". Reuters. 2007-10-25. http://uk.reuters.com/article/UK_COMPRESULTS/idUKL2581050020071025. Retrieved 2008-03-08.
  3. "Shell presses on with LNG tender round". Upstream Online (NHST Media Group). 2008-01-18. (subscription required). http://www.upstreamonline.com/hardcopy/news/article147288.ece. Retrieved 2008-03-08.
  4. National Iranian Gas Export Company (NIGEC) [1]
  5. National Iranian Gas Export Company (NIGEC) [2]
  6. "Gas liquefaction terminal projects". Reuters. 2007-09-24. http://uk.reuters.com/article/oilRpt/idUKL2886631920070924. Retrieved 2008-03-08.
  7. Royal Dutch Shell plc Annual Report and Form 20-F for the year ended December 31, 2007 [3]
  8. Repsol YPF Annual Report 2006, page 32[4]
  9. http://www.presstv.com/detail.aspx?id=130529&sectionid=351020103
  10. Shana.ir, Tuesday, April 22, 2008[5]
  11. forbes.com 05.12.08, [6]
  12. AFP [7]

External links