Rising domestic gas production is expected to meet the demand for feedstock by Iran’s petrochemical industry. The country has assigned a monthly quota of ethane to the petrochemical companies due to the lack of ethane supply produced domestically. However, the quota can soon be lifted when production in South Pars Gas Field goes fully operational, according to a report by Mehr News, run by Iran’s Islamic Ideology Dissemination Organization.
According to the report, domestic ethane demand is currently 5.5 million tons/year. However, Iran’s ethane production capacity is at 700 Mcfd. The country aims at producing 10.6 million tons/year of ethane when the South Pars is fully operational. The supply surplus can later be exported.
The Bidboland 2 project, as well as new wells in the Khangiran and South Zagros basins, is expected to produce 1 Bcfd of ethane. The ethane output will be used to produce urea, ammonia, methanol, and other petrochemical products.
