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{{for|the administrative subdivision|Asaluyeh District}} Asaluyeh ({{lang-fa|عسلويه}}, also [[Romanize]]d as ‘Asalūyeh and Asalu, and sometimes prefixed by bandar, meaning port) is a city in and the capital of [[Asaluyeh District]], in [[Kangan County]], [[Bushehr Province]], [[Iran]]. At the 2006 census, its population was 4,746, in 875 families. Located on the shore of the [[Persian Gulf]] some 270 km SE of the provincial capital of [[Bushehr]], it is best known as the site for the land based facilities of the huge [[PSEEZ]] (Pars Special Energy Economic Zone) project. The town itself is of minor significance, although it is common practice to refer to PSEEZ (established 1998) and Asaluyeh town collectively as Asaluyeh. Asaluyeh was chosen as the site of the PSEEZ facilities due to it being the closest land point to the largest [[natural gas field]] in the world, the [[South Pars / North Dome Gas-Condensate field#South Pars|South Pars / North Dome Gas-Condensate field]]. In addition, an existing airport and direct access to international waters via a deep water port were already present.


{{Seealso|#Special industrial economic zones|l1=National Iranian Petrochemical Company and Special Economic Zones in Iran}} [ The PSEEZ (Pars Special Energy/Economic Zone)] as it is known has been allocated 100 square kilometres of land at Asaluyeh for the various complexes and facilities. The site is a collection of different plants and [[refineries]] (known as "phases") and is administered by the [ PSEEZ agency onsite]. A total of 27 phases are envisaged (12 gas, 15 [[petrochemical]]), plus a mix of light and heavy industry, and associated support facilities such as factories and warehouses. The scale of the project is huge. Some 28 refineries and 25 petrochemical complexes are scheduled to be established in Asalouyeh, in southern [[Bushehr]] province. Of these, 10 refineries and 7 petrochemical complexes were already operational in 2009. PSEEZ is a workers town - tourism is non-existent. Currently there are no hotels in Asalouyeh, although plans exist to construct a hotel between the airport and the Industrial area. Once completed, the Sadaf International Hotel will consist of 400 rooms in three buildings, on 1 square kilometre of land. A [[Visa (document)|visa]] is required to enter Iran for most nationalities, and is therefore needed to visit the PSEEZ. The only exception to the visa requirement is if you visit [[Kish Island]], which allows visitors to enter visa-free. As of August 2005, US$20 billion dollars of foreign money had been invested in PSEEZ since 1997. According to [[Ministry of Petroleum (Iran)|Iran's oil ministry]], sales of products from PSEEZ could be as much as $11 billion dollars per year, over 30 years.

Special economic zone

{{Seealso|Foreign Direct Investment in Iran#Free Trade Zones and Special Economic Zones|l1=Foreign Direct Investment and Special Economic Zones in Iran}} The Pars Special Economic Energy Zone (PSEEZ) is a [[special economic zone]]. PSEEZ was established in 1998 for the utilization of [[South Pars]] oil and gas resources. Goods can be brought in duty free, but cannot leave the PSEEZ and enter the rest of Iran. This is to encourage construction within and development of the PSEEZ. The private sector has invested some $1.5 billion in the PSEEZ during the past 4 years (2009). Foreign entities have invested some $36 billion in the Pars Special Economic Energy Zone (PSEEZ) during the past 10 years (2009).

Asaloyeh Town

{{seealso|Geography of Iran}} Asaluyeh town is surrounded by PSEEZ, but is still geographically separate and a few minutes drive from the nearest PSEEZ facility. Before the arrival of PSEEZ, the primary industry was fishing, albeit a very small one. Asalouyeh was a sleepy coastal hamlet, on a narrow strip of land between the [[Persian Gulf]] and the [[Zagros Mountains]]. Poverty existed in the small town, and it remains to be seen how the Asalouyeh town will be affected by the massive influx of workers and related construction at PSEEZ, as it grows around the town. To date it does not appear that Asaluyeh town is undergoing any development as a result. PSEEZ is run by the oil ministry, and has no responsibilities towards Asalouyeh town. Asalouyeh has a main street and a couple of dozen small shops. In 2006 part of the town's seafront was given a promenade with some landscaping and decoration.


{{seealso|Construction in Iran}} The PSEEZ is one of the busiest ongoing construction sites in the world. At any one time up to 60,000 workers are onsite, mostly employed in construction of further gas and petrochemical refineries.


{{Seealso|Asalouyeh Airport|Transport in Iran}} Construction of a new airport began in 2003. The new Persian Gulf International Airport ([[IATA]] code: YEH) opened to traffic in July 2006, replacing the original temporary airport. The volume of construction works for facilities such as runways and aircraft parking area, fence, and patrol roads and access routes to the airport's boulevard, construction of terminals with Jetways to handle ‏750,000‏ passengers per year. Control tower and technical buildings as well as supporting buildings such as fire station, meteorology section and so on have been started. Airport characteristics are the runway with length of ‏4000‏ meters asphalt paved, width of ‏45‏ meters with two ‏7.5‏m shoulders along the runway. Aircraft parking area is ‏330‏ × ‏150‏ Sqm concrete paved. Airport area and peripheral buildings will be constructed on ‏18‏ hectares of land. Iranian specialists are undertaking execution works for this airport and installation of the airport"s navigation and lighting systems will be performed by foreign companies.

Pars-Port Complex

{{Seealso|Transport in Iran}} Logistic Port: Logistic port covers ‏150‏ hectares: The western breakwater is ‏2300‏ meters long and the eastern breakwater is ‏1000‏ meters long. The port basin is ‏100‏ hectares with capacity to accept ships of up to ‏80,000‏ tons deadweight. The nominal capacity of this port is ‏10‏ million tons per year including ‏1‏ million tons of granulated sulphur, ‏3‏ million of container products and ‏6‏ million tons of refinery machinery and parts. This port will have at least ‏10‏ berths that can simultaneously accommodate ‏10‏ ships and especially for exporting of sulphur, containers loading / unloading as heavy cargo. Water drought along the berths is at least ‏11‏ meters and at most ‏15‏ meters and the jetty in this port is ‏2600‏ meters long. At present, ‏5‏ berths are operational. All of the equipment needed by refineries and petrochemical industries were unloaded in this very port and installed on sites.
Petrochemical Port: The petrochemical port with ‏15‏ berths and draught of ‏15‏ meters can accommodate ships of capacity ‏80,000‏ tons deadweight that especially carry gas and petrochemical products. The nominal capacity of this port is ‏35‏ million tons per year and it is predicted that ‏26‏ million tons of petrochemical products in liquid from will be exported through this port. In accordance with the operations time schedule for the Zone"s petrochemical projects, execution operations on this port will be completed in three phases; phase ‏1‏ will be completed by ‏2005‏ and the project"s completion date will be year ‏2006‏.

Plants and Refineries

{{Seealso|National Iranian Oil Company|National Iranian Oil Refining and Distribution Company}} Each of the phases of the [[South Pars]] project is estimated to have an average capital spend of around US$1.5bn, and most will be led by foreign oil firms working in partnership with local companies. The government of [[President Ahmadinejad]], who came to power in 2005, has favoured local firms over foreign companies in the energy and other sectors. In 2010, Iran awarded $21 billion of contracts to local companies to develop six stages (phases 13, 14, 19, 22, 23 and 24) of the [[South Pars]] gas field. [[Khatam al-Anbia|Khatam al-Anbiya Construction Headquarters]], the engineering arm of the [[Revolutionary Guard Corps]], is part of the domestic group, as is [[Iranian Offshore Engineering and Construction Company|Oil Industries Engineering and Construction]] and [[SADRA|Iran Marine Industrial Co]]. The group also includes [[ISOICO|Iran Shipbuilding and Offshore Industries Complex Co.]], [[Industrial Development and Renovation Organization of Iran]], and [[National Iranian Oil Company#Subsidiary Companies|National Iranian Drilling Co]]. Managing the projects by [[List of Iranian companies|Iranian companies]] does not rule out the participation of foreign firms in [[South Pars]] projects. Any visitor to Asaluyeh will immediately notice the series of Gas and Petrochemical complexes running along the coast, one of the largest collection of such facilities in the world. The various plants and complexes currently run for some 12 km, and more are being constructed. A series of [[gas flare]]s which line the facility are immediately obvious, including one enormous flare in particular, with flames of almost 100 m in height. This flare is visible far out to sea. The area also hosts the world's largest [[aromatic]] production plant, [[National Iranian Petrochemical Company#NIPC affiliate companies|Noori Petrochemical Complex]], with an annual capacity of 4.2 million tons. Once completed, South Pars development revenue will exceed [[Ministry of Petroleum (Iran)#Revenues from crude oil|current oil exports incomes]]. Gas production at South Pars rose by nearly 30 per cent between March 2009 and March 2010. The field's reserves are estimated at 14 trillion cubic meters of gas and {{convert|18|Goilbbl|m3}} of gas condensates. Production at South Pars gas field will rise to 175 million cubic meters per day in 2012.

Project phases

{{main|South Pars / North Dome Gas-Condensate field}} *Phase 1 was developed by [[National Iranian Oil Company#Subsidiary Companies|Petropars]] to produce {{convert|1|e9cuft|m3}} per day of [[natural gas]], {{convert|40000|oilbbl|m3}} per day of condensate, 1500 tons of LPG per day plus 200 tons of [[sulfur]] per day. *Phases 2 and 3 were developed by a consortium of [[Total S.A.]], [[Petronas]], and [[Gazprom]] to produce {{convert|2|e9cuft|m3}} per day of natural gas, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. It came online in March 2003. *Phases 4 and 5 were developed by [[Eni]] and Petropars, to produce {{convert|2|e9cuft|m3}} per day of rich natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. *Phases 6 to 8 being developed by Petropars and [[Statoil]] to produce lean gas for re-injection into the Aghajari oilfield, and heavy gas and condensate for export. It involves construction of three offshore platforms in addition to the land-based facilities. Statoil is developing the offshore platforms while Petropars is developing the land based facilities. A 31-inch (790 mm) pipe will be laid from each platform to the coast. These phases will produce {{convert|3|e9cuft|m3}} per day of natural gas, 70 MMcf/d of [[ethane]], {{convert|120000|oilbbl|m3}} per day of condensate, 4500 Tons of LPG per day plus 600 tons of sulfur per day. *Phases 9 and 10 being developed by [[LG]] of Korea. These phases will produce {{convert|2|e9cuft|m3}} per day of natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. Phases 9 & 10 were inaugurated by President Ahmadinejad on March 2009. *Phases 11 will produce LNG through the [[Pars LNG]] project. The project was awarded to [[China National Petroleum Corporation]] in 2010 after that France's [[Total S.A.]] was excluded from the project by Iran. *Phases 12 development begin carried out by Petropars as a LNG project. This phase will produce {{convert|2.5|e9cuft|m3}} per day of rich natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. [[Venezuela]]’s state-owned oil company [[Petroleos de Venezuela S.A.]] (PDVSA) will finance 10 percent of the 7.8-billion-dollar project. [[Angola]]’s [[Sonangol Group]] has also been awarded a 20 percent stake in phase 12 project. *Phase 13 and 14 development will be for [[Persian LNG]] production. Development was awarded to an Iranian company (Khatam-ol-Osea) for $5 billion. The Iranian Khatam-ol-Osea Consortium is made up of several large Iranian companies, namely [[Khatam al-Anbia]] Construction Headquarters, [[Oil Industries Engineering & Construction (OIEC)]], [[SADRA]], [[ISOICO]], [[Industrial Development and Renovation Organization of Iran|IDRO]], and [[National Iranian Oil Company#Subsidiary Companies|NIDC]]. The contract to develop phase 13 was signed with a consortium comprising [[Mapna]], [[SADRA]], and [[Petro Pidar]] Iranian companies and the phase 14 with another consortia consisting of [[IDRO|Industrial Development and Renovation Organization]] (IDRO), [[National Iranian Oil Company#Subsidiary Companies|National Iranian Drilling Company]] (NIDC) and [[Iranian Offshore Engineering and Construction Company]] (IOEC). [[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. *Phases 15 and 16 development was awarded to [[Khatam al-Anbia]]. These phases will produce {{convert|2|e9cuft|m3}} per day of natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. In July 2010, the project was transferred to [[Iran Shipbuilding & Offshore Industries Complex]]. At that time, the 2 billion dollars project was already 50% complete. Phase 15 & 16 will be completed by March 2012. *Phases 17 and 18 development was assigned to a consortium of Oil Industrial Engineering and Construction Company (OIEC), Iran Offshore Engineering and Construction (IOEC) and Petropars. These phases will produce {{convert|2|e9cuft|m3}} per day of natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. Phase 17 & 18 will be completed by March 2012. *Phase 19 development was awarded to OIEC and Petropars. These phases will produce {{convert|2|e9cuft|m3}} per day of natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. As it is understood, this phase is defined within phase 1, so it can be regarded as some kind of expansion for phase 1. *Phases 20 and 21 development was awarded to [ OIEC].These phases will produce {{convert|2|e9cuft|m3}} per day of natural gas, 75 MMcf/d of ethane, {{convert|80000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day. In May 2008, [[Repsol]] and [[Royal Dutch Shell]] agreed to exchange block 13 with block 20 or 21 *Phases 22, 23 and 24 were awarded to [[Khatam al-Anbia]], [[Petro Sina Arian]], and [[SADRA]] and are located in the north-eastern frontier of the field. The aim of phases 22, 23 and 24 development is to produce 42.5 million cubic meters of natural gas, {{convert|57000|oilbbl|m3}} of gas condensate and 300 tons of sulfur per day. The three phases also are designed to produce 800 thousands of LNG and 750 thousand tons of ethane per year. *Phases 25 and 26 are in tender. *Phases 27 and 28 development was assigned to Petropars on an [[EPC (contract)|EPC]] scheme. These phases will produce {{convert|2|e9cuft|m3}} per day of natural gas, 75 MMcf/d of ethane, {{convert|75000|oilbbl|m3}} per day of condensate, 3000 tons of LPG per day plus 400 tons of sulfur per day.

South Pars Gas Field

{{main|South Pars / North Dome Gas-Condensate field}} {{seealso|National Iranian Gas Company}} [[File:SouthParsLocationMap.jpg|thumb||350px|South Pars/North Dome Field Location]] The field is located in the [[Persian Gulf]]. The field is the biggest gas field in the world, shared between Iran and Qatar, which contains {{convert|1800000000000000|cuft|km3|sigfig=2}} gas in place and {{convert|56|Goilbbl|m3}} of condensate in place in both parts. The South Pars Field is the name of northern part, which is located in Iranian waters and the North Dome is the name of southern part, which is located in Qatari waters. South Pars Field was discovered in 1990 by NIOC. Production started from the southern extension of the field, the North Dome in 1989, at daily gas production rate of 800 mmscf/d. Gas production started from South Pars field by commissioning the development phase 2 in December 2002 to produce 1 bscf/d of wet gas. The field consists of two independent gas-bearing formations, Kangan and Upper Dalan. Each formation is divided into two different reservoir layers, separated by impermeable barriers. Therefore, the field consists of four independent reservoir layers K1, K2, K3, and K4. Iranian sections contains {{convert|500000000000000|cuft|km3|sigfig=2}} of gas in place and around {{convert|360000000000000|cuft|km3|sigfig=2}} of recoverable gas. It covers an area of {{convert|500|sqmi|km2|sigfig=2}} and is located 3 km below the seabed at a water depth of 65 m. The Iranian side accounts for 10% of the world's and 60% of Iran's total gas reserves. The field is planned to be developed in around 30 phases, each of which will require an initial investment of around $1bn.

Downstream Industries

{{seealso|National Iranian Petrochemical Company}} Due to the availability of Petrochemicals and their by-products, 10 square kilometres at PSEEZ has been allocated for related industries, such as: * [[Resins]] & [[Adhesives]] * [[Rubber]] & [[Plastics]] * [[Synthetic fiber]]s & [[textiles]] * [[Oils]] * [[Fertilizers]] * [[Polymers]] * [[Paints]] & Protective Coatings * [[Pesticides]] * [[Detergents]] Private companies are also constructing a [[office park|business park]] and [[warehouses]]. Internet access and telephony facilities are also available via a [[Tehran]] based [[Internet Service Provider]], [[Pars Online]]. No other ISP's are present at PSEEZ. In 2010, a large [[List of power stations in Iran|power plant]] with 1,000 megawatts output was inaugurated in Asalouyeh, aiming to supply electricity to the refineries of [[South Pars]] gas field phases 9, 10, 15, 16, 17, and 18.

Water supply project

{{Seealso|Water supply and sanitation in Iran}} Construction of two water desalination plants each with a capacity of ‏10,000‏ cubic per day started in March 2005. The project was finished 10 months ahead of its contractual 16 months estimate, making it a landmark in project execution in the region. The creation of a network for transferring water distribution network in different sites is underway.

Green space and environment

{{seealso|Environmental issues in Iran}} In view of the Zone's policy on environmental protection and alleviation of industrial pollutions, first steps have been taken in the form of ‏1000‏ hectares of urban green space and ‏3000‏ hectares allocated to forestation and expansion of the mangrove trees in the tidal area of the sea. In this way, ‏10%‏ of the total industrial site and ‏28%‏ of the entire Zone will be transformed into green space.

Foreign involvement

{{main|Foreign Direct Investment in Iran}} Individual gas and petrochemical plants at Asoluyeh, when constructed, usually involve a partnership with a foreign company. The [[Government of Iran|government]] of [[President Ahmadinejad]], who came to power in 2005, has favoured [[National Iranian Oil Company#NIOC's major domestic contractors|local firms]] over foreign companies in the energy and other sectors. Due to the [[U.S. sanctions against Iran|embargo in place against Iran]] by the [[United States]], it is mostly European and Asian companies becoming involved. These include: * [[China National Petroleum Corporation]] * [[Daelim]] * [[Eni]] (formerly known as Agip) * [[Gazprom]] * Hyundai Engineering and Construction (with [[Linde]] Group) * Japan Gasoline Company (JGC) - involved in the construction of the world's largest gas refinery. * [[LG]] * [[Petronas]] * [[Statoil]] * [[Technip]] * [[Total S.A.|Total]] * [[Toyo Engineering Corporation]] (TEC) However, the US company [[Halliburton]] and [[American Allied International Corporation]], have contracts for and business dealing with South Pars via subsidiaries. Plans for LNG refining and export have been discussed - but it remains to be seen how this will be accomplished, as most LNG refining technology is US based and therefore subject to export control due to [[Iran and Libya Sanctions Act|US sanctions]].

See also

*[[Ministry of Petroleum of Iran]] *[[National Iranian Gas Company]] *[[National Iranian Oil Company]] *[[National Iranian Petrochemical Company]] *[[Asalouyeh Airport]] *[[South Pars / North Dome Gas-Condensate field]] *[[Economy of Iran]] *[[List of natural gas fields]] *[[International rankings of Iran]]

External links

*[ Pars Special Economic Energy Zone company] *[ Iran Asalouyeh Official Website] *[ Iran Asalouyeh Official Website] *[ PSEEZ Official Site] *[ Port and Shipping Authority of Asaluyeh] *[ Pars Business Park] *[ Pars Industrial Warehouses] *[ Pars Online ISP at Asalouyeh] *[ US Department of the Treasury - Information and Guidelines on Trade Sanctions against Iran] *[ Iran - Persian Gulf, Asalouyeh - Southern Pars] Flickr *[ Pars Special Economic Energy Zone company] *[ Iran Daily] *[ Oil, Gas and Petrochemical Industries Forum] *[ ایران عسلویه(Oil , Gas and Petrochemical Directory)] Videos *[ Asalouyeh] -[[PressTV]] video {{Energy in Iran}} {{Bushehr Province}}