Greater Caspian Region Weekly Overview - August 31st
Iran
Iran plans to export 66 bcm/a gas by 2021
Iran revealed details of its 6th National Development Plan’s (2016 to 2021) on August 31st, saying that increasing gas export from the current level of 10 billion cubic meters per annum (bcm/a) to 66 bcm/a by 2021 is planned.
Shana quoted the head of Iran's national gas company as saying the country's refined gas production volume would double to 1,000 million cubic meters per day (mcm/d) by March 2021.
Iran currently produces about 700 mcm/d of raw gas, of which 500 mcm/d is refined.
Iran is to increase gas production from South Pars to 800 mcm/d by 2019.
Iran, South Africa discussing LNG and GTL plants building
Iran and South Africa are discussing the construction of LNG plants.
The Deputy Petroleum Minister & National Petrochemical Company President Abbas Shari Moghadam said during a meeting with South African Deputy Energy Minister Thembisile Majola on August 30th that Iran has absorbed $8 billion in foreign investments in petrochemical projects so far and plans to triple the petrochemical products output to 180 million tons per annum (MT/a) by 2025.
Iran has previously announced that there are $70 billion worth petrochemical projects to be offered to foreign companies.
South African Deputy Energy Minister Thembisile Majola says her country will need to import LNG cargoes from Iran to feed its developing refineries.
She said that South Africa is trying to prepare the grounds for the participation of state and private enterprisers in Iranian LNG and Gas to Liquid (GTL) projects.
South Africa’s energy giant Sasol was previously involved in discussions with Iran over the development of the country’s first GTL project, Press TV reported.
The project envisaged the development of Iran’s South Pars Phase 14 with the view of turning the output into liquid gas.
India, Iran discussing petrochemical plants building
Indian Oil Corp. is seeking to build a $3 billion petrochemicals plant in Iran, the people with direct knowledge of the matter told Bloomberg on August 30th.
The plan hinges on assurances from Iran that the 1 million-ton-a-year project will have access to cheap natural gas as feedstock, said the people, who asked not to be identified because the information isn’t public.
At the same time, Indian Economic Times reported that as India is going ahead with its plans to set up a 1.3 million tonne urea plant in Iran, a delegation will visit the Persian Gulf country next month to finalise 1-2 local partners for the project.
The government has nominated Rashtriya Chemicals and Fertilizers Ltd (RCF) along with Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) and Gujarat State Fertilizer Corn (GSFC) for proposed 1.3 million tonne urea joint venture plant in Iran.
The consortium is planning to set up joint venture project at Chahbahar in Iran using natural gas as feed stock which is abundant in that country with an estimated investment of USD $903 million.
Iran introducing 3 gas fields to foreigners
Iran is preparing to introduce three major gas fields: North Pars, Golshan, and Ferdowsi to foreign companies based on new designed Iran petroleum contract (IPC) offers.
These will be presented during a conference in London, UK where the Iranian Oil Ministry is going to introduce oil and gas contracts to foreign investors, CEO of Pars Oil and Gas Company Ali Akbar Shabanlu said on August 26th.
Golshan gas field contains 1.4 trillion cubic meters of gas, while Ferdowsi holds 300 bcm.
North Pars is a part of big project, composed of North and South Pars, containing about 14 trillion cubic meters of gas reserves in Iranian side. This field is a joint with Qatar.
Iran: Gas export to Kuwait through Iraq is possible
Iran said that delivering gas to Kuwait through Iraq is possible.
According to a report released by Shana on August 22nd, Managing director of Iran's Gas Engineering and Development Company Alireza Gharibi said that after commencing Iran-Basra gas pipeline, a branch from this pipeline can be diverted to Kuwait.
The 141-km, 48-inch Iran-Basrah pipeline is aimed to deliver 35 mcm/d of Iranian South Pars gas to Basra.
He said that Iran and Iraq finalized the draft of memorandum of understanding of exporting Iranian gas to this country last week.
Azerbaijan
SOCAR Turkey (SOCAR Türkiye Enerji A.Ş.) is to purchase a stake in TANAP.
The Turkish unit of the State Oil Company of the Azerbaijan Republic (SOCAR) has indicated that it plans to acquire a 7 percent stake in Trans Anatolian Gas Pipeline (TANAP).
CEO Kenan Yavuz told reporters that the company would purchase shares in TANAP held by SOCAR, which would then reduce SOCAR's stake in TANAP to 51 percent.
SOCAR has already announced that it does not intend to decrease its stake in TANAP to less than 51 percent.
Responding to a question from Natural Gas Europe as to why SOCAR wishes to sell its share to its own subsidiary company, Yavuz said that it was because of two reasons: "Decreasing SOCAR's expenditures and increasing SOCAR Turkey Energy's influence in Turkey."
Shah Deniz gas pipeline flow halted by explosion in Turkey
Gas flow on the Shah Deniz pipeline carrying natural gas from Azerbaijan was halted by an explosion in Turkey on August 24 evening. Azerbaijani gas deliveries to Turkey haven't yet resumed.
This is the second time during a short time due to sabotage acts, allegedly done by Kurdish militants.
An explosion had previously hit the pipeline on August 4th, after the flow had already been suspended for maintenance.
SOCAR confirms interest in acquiring DESFA stake
SOCAR (State Oil Company of Azerbaijan) has confirmed its interest in acquiring a stake in Greek gas transmission system operator DESFA with a possibility of completing the transaction by late 2015, Reuters reported August 26th quoting a representative of the Hellenic Republic Asset Development Fund (HRADF).
The representative said that Athens examined the variant, in which SOCAR will acquire a 66 percent stake in DESFA with the further transfer of 17 percent to the Greek government or the third party to comply with EU requirements.
The representatives of HRADF and Hellenic Petroleum held a meeting with SOCAR’s representatives August 26th. Both sides reaffirmed their commitment to the rapid completion of the transaction, HRADF said.
SOCAR won a tender in December 2013 on the sale of the 66 percent share in DESFA for €400 million.
In November 2014, the European Commission started an inquiry into the compliance of the deal on acquisition of a stake in DESFA with the EU’s regulations.
Currently, the deal is being considered by European Commission’s Directorate-General for Competition, and the procedure will last until late 2015.