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    Iran Completes Igat-6, Expands Igat-7

Summary

Iran is expanding its gas delivery system with a view to exports as well as to reaching new customers within Iran,

by: Dalga Khatinoglu

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Natural Gas & LNG News, Middle East, Corporate, Exploration & Production, Import/Export, Political, Ministries, Infrastructure, , News By Country, Iran

Iran Completes Igat-6, Expands Igat-7

A day after inaugurating the 110mn m³/d Iranian gas trunk-line 6 (Igat-6) from the giant South Pars gas field to the western regions, Iran’s oil and defence ministries signed a €245mn contract to develop Igat-7 on April 24, taking gas the opposite way.

The contract covers a 290-km pipeline, linking Igat-7 to the ports of Makran and Chabahar. The defence ministry was involved because it owns several petrochemical and industrial plants in Makran, through its Social Securities Investment Company (Shastan), which need gas. Shastan has to invest in the pipeline.

The pipeline now operates at just a quarter of final capacity, but it is projected to increase with deliveries to Oman (30mn m³/d, perhaps for liquefaction and export); and Pakistan (22mn m3/d).

Iran’s oil minister Bijan Namdar Zanganeh said April 23 that Oman would invite bids for a subsea pipeline between Iran and its Sohar coast in May 2018. Reuters reported that eight consortiums from across the globe have already expressed interest in involvement with the project. The cost is put at about $1.2bn.

Pakistan was due to have started Iranian gas intake in January 2015, but the pipeline to the border with Iran remains unbuilt. Iran’s Igat-7 is also still 180 km away from Pakistan's borders.

Coming to completion of Igat-6, Iran plans to start gas deliveries to Iraq’s Basrah this year, while gas supply to Baghdad started last summer.  Iran has two agreements with Iraq, both for 25mn m3/d.

Iran produced 214bn m3/yr refined gas in the year to March 20, but this year the volume is expected to reach 250bn m³, the national Iranian gas company announced April 24; and to 300bn m3/yr by 2022.