Iran to Allocate $5 bn for South Pars Phases 20-24

Iran will allocated $5 billion from National Development Fund to speed up development on phases 20-24 of the South Pars gas field.

“Providing part of the financial resources for implementation of South Pars gas field projects by National Development Fund is an important leap forward so that by the move 20-24 phases will face no problem in view of meeting their financial needs,” Iranian minister of petroleum Rostam Qasemi told Shana News Agency.

As per this year’s budget, 18 percent of NDF’s funds have been allocated to implementation of oil industry projects, the official said adding out of the figure another five billion dollars will be allocated in near future to those projects that their implementation is a priority.

Qasemi added that another two billion dollars of the NDF’s funds will be assigned to development of South Pars gas field’s projects and remainder will be paid to the projects are under development by National Iranian Offshore Oil Company (NIOOC).

Meanwhile, Shana also reported that South Pars gas field’s phase 12 will start producing 25 million cubic meters of gas per day by February next year. Speaking to the news agency, manager of South Pars phase 12, Mahmoud Akbari said the phase had made progress by 80 percent.

Phase 12 has a production target of 75 million cubic meters of gas per day of which 25 million cubic meters will be injected to the country's gas grid and the remainder will be converted into LNG.