Iran’s South Pars Phase 14 to generate $5b annually
Phase 14 of South Pars Gas Field is projected to generate an annual income of approximately $5 billion, Iran’s Industrial Development and Renovation Organization (IDRO) said on Sunday.
The $5.2 billion refinery, entirely built by local experts, was brought on line by President Ebrahim Raeisi on Thursday.
The inauguration marks a significant milestone in Iran’s strategy to increase its oil and gas production capacity and improve its infrastructure, despite being subject to US economic sanctions.
Hamid Bazargan, an IDRO deputy, said the megaproject has been Iran’s largest domestic construction since the 2018 sanctions targeted the country’s energy sector.
According to Bazargan, the completion of Phase 14 in southern Iran signifies the end of the country’s most important industrial project since the 1979 Islamic Revolution.
He further stated that the launch of the project will help Iran surpass Qatar in gas extraction from the shared field, consolidating the country’s place as one of the leading global producers of natural gas.
Bazargan noted that Phase 14 will effectively close the case for the development of the onshore part of the South Pars Gas Field.
“This is expected to mitigate the challenges caused by gas imbalances during colder seasons.”
The project, undertaken by a consortium of eight Iranian companies, received support from the ministries of oil and industries to empower local firms in the oil and gas sector. Phase 14 of South Pars is, therefore, the most significant infrastructure project completed by local experts in Iran in the last five years, he added.
Iran’s investment in its oil and gas industry continues to bear fruit, despite the economic sanctions. The successful completion of Phase 14 of South Pars will further bolster the country’s efforts to increase its production capacity and enhance its standing in the global natural gas market.