On Tuesday, in a press conference, Gholam-Abbas Hosseini stated that approximately 130 billion cubic meters of gas had been delivered to the national pipeline in the past eight months, noting that this represents a 1.2 billion cubic meter increase in gas injection compared to the same period of last year.

He also mentioned that around 45% of the feedstock for the Persian Gulf Star Refinery comes from the South Pars gas fields, adding that the complex had won first place in supporting new technology-based firms and producing "first-time" goods at the Ministry of Oil level.

He added that about 1,500 items required by the South Pars Gas Complex are produced domestically.

Completion of overhauling

Hosseini highlighted the overhauling at the SPGC and the need to secure gas supplies for power plants during the summer.

He noted that there was limited time for repairs during the summer and, this year, with the hard work of employees under extreme heat, maintenance work was reduced from 45 days to 20-25 days.

The CEO added that for next year, plans are in place to start the overhaul in early March to ensure no issues for the winter.

He emphasized that the main challenge for the complex is maintaining gas production, saying, "Today, even one million cubic meters of gas is crucial for us, and we are optimistic that with the efforts of our colleagues at the 13 refineries, we will have a good winter."

Hosseini also referenced the government's 2020 decision to eliminate flaring, noting that the process began in 2021, and contractors were selected in 2022. Currently, about 8.7 million cubic meters of flare gas are emitted daily, but with the plans in place, this will be reduced to 5.3 million cubic meters by the end of the year. He added that by the end of 2025, the target is to lower this figure to 3 million cubic meters.

Economic dependence on South Pars

Mohammadreza Joulaei, director of coordination and oversight at the National Iranian Gas Company, further elaborated during the press conference.

He stated that nearly 590 mcm of the 860 mcm of natural gas delivered to the national grid is produced at the South Pars Gas Complex.

The complex also produces around 700,000 barrels of condensate, nearly 20,000 tons of liquefied petroleum gas (LPG), 1,500 tons of sulfur, and approximately 5,000-6,000 tons of ethane.

Joulaei highlighted that, in addition to supplying the country’s gas and energy needs, the nation's economy is heavily dependent on South Pars, with gas production at the complex equivalent to 3.5 million barrels of crude oil.

He added that the gas produced at South Pars is sour and requires special processing to be sweetened and injected into the national pipeline. There are about 60 gas condensate storage tanks at the complex, along with an equal number of LPG tanks.

Joulaei also noted that the complex houses a 1,000 MW power plant that supplies electricity to both the complex and the national grid. Additionally, there is another power plant at Site 2 of the complex.

Daily gas production hits 865 mcm

Joulaei explained that, given the current gas shortage, production is exceeding the Oil Ministry's commitments.

With coordination with upstream producers and capacity enhancements at the refineries, the complex receives over one billion cubic meters of sour gas daily, producing nearly 865 mcm of natural gas.

He pointed out that this winter began in November, creating additional pressure on the National Iranian Gas Company.

The official noted that 75% of the country's energy basket relies on gas, with 70% of that produced at South Pars.

Joulayi mentioned that while most of the country’s gas transmission pipelines are located in South Pars, compressors at all refineries are working to direct gas to these pipelines.

He further discussed the challenges of relying heavily on gas for the nation’s energy needs, especially considering that domestic consumption in the summer can reach 150 mcm, compared to 600-700 mcm in winter.

This has led to greater competition for gas resources between residential, commercial, and industrial sectors, as well as power plants.

Joulayi stated that power plants require maximum gas supplies in winter, but high residential demand makes this difficult.

He noted that power plants should use alternative fuels, but they have not been doing so.