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Iran's total investment in South Pars hits $30B

12/21/10 Source: Mehr News Agency, Tehran

Some $30 billion have been invested in the giant South Pars gas fields' development plan so far, an official with the Pars Oil and Gas Company said in Tehran on Tuesday.

IRNA quoted Hossein Nosratzadeh as saying that "during the previous year 1 billion and over 30,000 billion rials (some $3 billion) worth of bonds have been offered to the public."

"It is estimated that the amount will reach over 40 billion dollars during the next five years," he added.

"Investment in South Pars gas field on average has increased by 25 percent per year," he concluded.

Deputy Oil Minister Ahmad Qalehbani said in November that a further $3 billion credit line will soon be set up for the projects in South Pars.

Pars Oil and Gas Company's Managing Director Ali Vakili said in August that phases 15 and 16 are 52 percent complete, while phases 17 and 18 are 50 percent complete.

Once the phases come on stream 100 million cubic meters of gas would be added to the nation's sweetened gas production capacity.

SP gas field's current production capacity stands at 75 million cubic meters of gas per year.

Iran has the second largest gas reserves in the world after Russia.

The offshore South Pars field contains about half of the estimated 28 trillion cubic meters of the country's gas reserves.

Qatar holds the southern section of the field, which is referred to as the North Dome. South Pars along with the North Dome combined are the world's largest known gas reservoir.

Qatar has developed its side of the field to become the world's largest exporter of liquefied natural gas (LNG).

Iran inks $6.5b worth of gas deals

Iran signed $6.5 billion worth of gas contracts during the previous week, deputy oil minister said in Tehran on Tuesday.

Javad Owji said that "we have signed $2.5 billion worth of contracts for construction of two gas pipelines in order to export Iranian gas to Europe and Pakistan."

"A $4 billion contract was also signed with the Bank Saderat of Iran for implementation of Bidboland gas refinery and Parsian refinery's ethane extraction plant," he explained.

According to the official, Bank Saderat of Iran and National Iranian Gas Company respectively own 80 percent and 20 percent stakes in the two mentioned projects.

Owji went on to note that Iran still offers the world's cheapest gas.

Iran possesses the world's second largest gas reserves, which makeup almost 16 percent of the world's total.

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