Persian LNG
Encyclopedia
Persian LNG is the LNG
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

 project in Iran. It has been defined based on the huge reserves of the South Pars gas field
South Pars / North Dome Gas-Condensate field
The South Pars / North Dome field is a natural gas condensate field located in the Persian Gulf. It is the world's largest gas field, shared between Iran and Qatar...

. Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...

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

Technical description

Persian LNG project consists of development of phases 13 and 14 of South Pars Gas field
South Pars / North Dome Gas-Condensate field
The South Pars / North Dome field is a natural gas condensate field located in the Persian Gulf. It is the world's largest gas field, shared between Iran and Qatar...

 and construction of two LNG train
LNG train
An LNG train is the term used to describe the liquefaction and purification facilities in a liquefied natural gas plant.In order to make it practical and commercially viable to transport natural gas from one country to another, its volume has to be greatly reduced...

s 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 (812.8 mm).

Initially the project will be implemented in two phases:
  • 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.

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

Project company

Project is a partnership of;
  • NIOC - 50%,
  • Royal Dutch Shell
    Royal Dutch Shell
    Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...

     - 25%
  • Repsol YPF
    Repsol YPF
    Repsol YPF, S.A. is an integrated Spanish oil and gas company with operations in 29 countries...

     - 25%


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.

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.

Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...

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

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.

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
National Iranian Oil Company
The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...

 can proceed with the immediate development of phase 13.

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.

See also

  • World Largest Gas Fields
  • NIOC Recent Discoveries
  • Iran Natural Gas Reserves
  • South Pars Gas Field
  • North Pars Gas Field
  • Golshan Gas Field
    Golshan Gas Field
    The Golshan gas field is one of the NIOC Recent Discoveries which is located at approximately 180 km south east of Bushehr, 65 km offshore the Persian Gulf...

  • Ferdowsi Gas Field
    Ferdowsi Gas Field
    Ferdowsi Gas Field is one of the NIOC Recent Discoveries which is located at approximately 190 kilometers southeast of Bushehr, 85 kilometers offshore the Persian Gulf....

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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