• Natural Gas News

    Iran Cancels Major Pipe Plan

Summary

The country is now going to adapt an existing pipeline instead.

by: Dalga Khatinoglu

Posted in:

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

Iran Cancels Major Pipe Plan

Iran has cancelled trunk-line (Igat) 9, which had been intended to deliver 110mn m3/d of South Pars gas in the Persian Gulf to the northwest.

National Iranian gas company (NIGC) CEO Hassan Montazer Torbati told state TV on September 4 that instead of a separate pipeline, Igat-6 would be extended to those regions.

Iran inaugurated Igat-6 in April 2018. The pipeline, which also has 110mn m3/d nominal capacity, will now deliver gas to both the west and northwest of Iran, as well as to Iraq. Almost half of it will go to Baghdad and Basra, based on two contracts each for 25mn m³/day.

Iraq imported 11.23mn m3/d of gas from Iran last year, based on BP’s 2019 Statistical Review of World Energy. Iran’s own official statistics, based on fiscal year (started on March 21), shows exports of 12.1mn m3/d to Iraq during the last fiscal year.

Montazer Torbati said that the expansion of Igat-6 (expansion) would be inaugurated by the country's president Hassan Rouhani in the coming days.

Iran delivers gas to Turkey by a pipeline that has been operating since 1970. Iran delivered 3.7bn m3 gas to Turkey in the first half of the year, according to the latest statistics from the Turkish energy market regulator. The 25-year gas purchase contract was sealed in 1996.

NIGC did not elaborate whether Igat-6 would operate at full capacity or not, but he said that five compressor stations have been launched. The original plan for delivering 110mn m³/d had specified 12 compressor stations.