MoU signed on increasing ethane extraction from SP
The National Iranian Gas Company (NIGC) signed a memorandum of understanding (MoU) on increasing ethane extraction from the nine refineries of the South Pars Gas Field.
Speaking in the signing ceremony on Monday, Iranian Oil Minister Javad Owji said ethane extraction from the nine refineries will generate a $250-$300 million profit per annum, Shana reported.
The executive operations of the project will start within the next two months, he said, saying the project will create added value and job opportunities when it comes on stream.
More than 700 million cubic meters of gas are extracted from the South Pars field, said the minister, adding the output will increase when the development project of SP Phase 11 becomes operational.
According to Owji, 66 percent of ethane produced in SP refineries is currently extracted and the remainder is injected to the countrywide pipeline and burnt.
The country’s first ethane extraction project was implemented by the Executive Headquarters of Imam’s Directive in Parsian Gas Refinery and its affiliated companies have valuable experience in this field, he continued.
The annual ethane extraction from the nine refineries will be 1.1 million tons, said the minister, explaining the profit will be invested in the headquarters’ projects or value chain of the same project or public utility projects.
Meanwhile, the NIGC head announced that the country’s annual ethane production is expected to reach five million tons in the near future.
“With the implementation of this project, in addition to increasing production, part of the possible shortage of this valuable product will be compensated for in the coming years,” said Majid Chegeni.
He put the country’s current annual ethane production at 4.2 million tons, saying that the country has the capacity to produce more than 7.2 million tons of ethane each year.