Persian LNG

Persian LNG is the LNG project in Iran. It has been defined based on the huge reserves of the South Pars gas field.

Technical description

Persian LNG project consists of development of phases 13 and 14 of South Pars Gas field and construction of two LNG trains 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 convert|135|km|mi|0 long subsea pipeline with diameter of convert|32|in|mm|-1.cite news
publisher= Reuters
url= http://uk.reuters.com/article/UK_COMPRESULTS/idUKL2581050020071025
title = Shell says to take politics into account on Iran deal
date=2007-10-25
accessdate=2008-03-08] cite news
publisher= Upstream Online
url= http://www.zawya.com/Story.cfm/sidZAWYA20080118080929/SecMain/pagHomepage/chnAll%20Regional%20News/obj2A17E941-F5E0-11D4-867D00D0B74A0D7C/
title = Shell presses on with LNG tender round
date= 2008-01-18
accessdate=2008-03-08]

Initially the project will be implemented in two phases: [ National Iranian Gas Export Company (NIGEC) [http://www.nigec.ir/default.aspx?Page=Projects%20Persian%20LNG&nid=37#Top] ]

*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. [National Iranian Gas Export Company (NIGEC) [http://www.nigec.ir/default.aspx?Page=Projects%20Persian%20LNG&nid=37#Top] ]

The project is expected to cost US$10 billion and the LNG plant is expected to be commissioned by 2012.cite news
publisher= Reuters
url= http://uk.reuters.com/article/oilRpt/idUKL2886631920070924
title = Gas liquefaction terminal projects
date=2007-09-24
accessdate=2008-03-08] 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 - 25%
*Repsol YPF - 25% According to the Royal Dutch Shell plc Annual Report 2007, In early 2007, Shell and Repsol entered into a service contract withrespect 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. [ Royal Dutch Shell plc Annual Report and Form 20-F for the year ended December 31, 2007 [http://www.shell.com/static/investor-en/downloads/financial_information/reports/2007/2007_annual_report.pdf] ] Repsol YPF in its 2004 Annual Repost indicates that, Repsol YPF and Shell signed the Service Contract in January 2007 for thePersian LNG project, which contains the conditions for exploration and development operations in phases 13 and 14 of theSouth 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. [ Repsol YPF Annual Report 2006, page 32 [http://www.repsolypf.com/imagenes/es_en/Annual%20Report%202006_tcm11-402504.pdf] ]

upply 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. [ Shana.ir, Tuesday, April 22, 2008 [http://www.shana.ir/129403-en.html] ]

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 can proceed with the immediate development of phase 13. [ forbes.com 05.12.08, [http://www.forbes.com/markets/feeds/afx/2008/05/12/afx4995133.html] ]

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. [ AFP [http://afp.google.com/article/ALeqM5iIGkIuxbmjYcu2B04-BJ0CZTOdhQ] ]

ee also

*World Largest Gas Fields
*NIOC Recent Discoveries
*Iran Natural Gas Reserves
*South Pars Gas Field
*North Pars Gas Field
*Golshan Gas Field
*Ferdowsi Gas Field

References

External links

* [http://www.persianlng.com/home.php Persian LNG Company Website]