21 May 2007 - 09:38
  • News Code: 105134

Persian Gulf is home to the most vital oil and gas resources in the world. It is situated in the most sensitive and strategic areas known by many politicians as the ’Heart of the World’.

The name ’Persian Gulf’ is well known in the industrial world. According to a 2002 report, Iran’s oil and gas resources were estimated at 270 million barrels, 37 percent of which is oil and the remaining 63 percent is gas. These natural resources are mainly located on the Iranian shores of the Persian Gulf. Iran daily reports:

 

Asalouyeh

Although the refinery installments are eye-catching during daytime, this city must be visited at nights. Asalouyeh is a city close to the Persian Gulf, 276 kilometers southwest of Bushehr. Just ten years ago the city was known as a remote area. Residents of this city, which was a village then, were unaware of the wealth buried underneath and engaged in fishing to make ends meet. Later official studies revealed that the area holds 6.8 percent of the world’s gas resources and 33 percent of Iran’s water resources.

After 12 years of preliminary studies in the area, Asalouyeh attracted the attention of many Iranians and foreign investors. It is now recognized as the most important economical centers of Iran and the biggest energy production center in the world.

Natural gas resources have made Asalouyeh the most important gas-city of Iran and its residents are now proud of their city. They expect to see Asalouyeh become the biggest energy hub in the Middle East.

Iran took serious steps to launch its projects in Asalouyeh 1999. The entire project includes 28 phases. Five phases have become operational and five phases are in the construction stage. Location for 10 phases is being finalized and the remaining eight phases are considered for export activities. The project adds 10 percent to the country’s GDP annually. There are 40,000 people, experts and workers, involved in the projects. What makes Asalouyeh more important is that its gas export revenues can equal the oil earnings in near future. Experts believe that the project is the most important oil and gas development scheme in the country. The huge oil and gas installations of ’Jam’ and ’Kharg’ are home to the seven percent of the world’s gas resources making Bushehr province the best place for establishing oil, gas and petrochemical related industries.

The main purpose of this enormous project, which is undoubtedly the biggest oil-industrial zones in the Middle East, is to pave the way for attracting foreign investors. Foreign investment will ensure economic growth and employment. It will also help the economy of the country in the long-term. Neighboring free and international waters is another advantage of Asalouyeh.

 

South Pars

Undoubtedly South Pars Gas Field (SPGF) is one of the world’s biggest independent gas fields. Its development project is also among the largest industrial undertakings. It straddles Iran-Qatar maritime border. The Qatari side, with the help of some western countries began exploiting this gas field sooner than Iran and during the Iraq-imposed war on Iran (1980-88) they could make big benefits from this natural resource. The Iranian government has recently paid more attention to it by allocating foreign exchanges. There are five refineries operating in Asalouyeh bringing Iran some $20 million in revenue daily. Economical experts predict that the expected $50 billion of investment in the area will fetch $40 billion annually for the national economy.

SPGF is located over an area of 9,700 square kilometers of which 3,700 kilometers is exploited by Iran. Petrochemical installments refine sour gas extracted from the field. Crude gas is sour, hot and smells awful. It is also prone to igniting an explosion. Refineries liquidate the gas and prepare it for export. Propane and butane are the two major products exported from the refineries. They are transferred to vessels by pipes after they are stored in the refineries. Estimates show that Qatari side exploits 125,000,000 cubic meters daily from SPGF.

Iran holds the world’s second largest gas reserves and should consider international investments to increase exports. According to official figures, global demand for gas will increase 2.3 percent annually before 2030. LNG or liquefied natural gas will be most in demand globally in next decade as public transportation system prefers it to gasoline petrol. It is cheap and has less pollution. Iran should therefore plan to become one of the main exporters of LNG in the world by expanding its refineries and LNG terminals. The United States is the biggest importer of LNG in the world. It imports LNG from different countries particularly Qatar.

News Code 105134

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