Iran To Open Biggest Gas Refinery Next Year

Managing director of the National Iranian Offshore Oil Company (NIOOC) says the biggest gas refinery in the Gulf will become operational in the southern Iranian island of Qeshm next year.

Mahmoud Zirakchianzadeh said Sunday that the Qeshm gas refinery would be able to process about 80 million cubic feet of gas per day and will become fully operational next year. 

The official added that the design, construction, installation, and commissioning stages of the project have beenundertaken by domestic contractors and manufacturers. 

Zirakchianzadeh said the construction of the gas refinery on Qeshm Island has started in parallel with the development of Hengam oil field which is close to the island. 

Hengam oil field, which is shared with Oman, is currently producing more than 22,000 barrels per day of oil, with the target output of 30,000 bpd. 

On April 23, Zirakchianzadeh said that about USD 450 million has been invested in developing the first phase of the field, with a total of about USD 800 million appropriated for the development of both phases of the joint field. 

Since the beginning of its development, Hengam oil field has yielded about five million barrels of light crude oil. 

Oman teamed up with a British company and started production by tapping 10,000 bpd of crude oil from the field, which is called Bukha in Oman, in March 2009, after building a 25-kilometer pipeline. 

Iran began early production from the joint field in September 2010 by producing 10,000 bpd of light crude oil.