Lavan to become Iran\'s 3rd major petrochemical hub

Iran plans to turn its Persian Gulf island of Lavan into its third major petrochemical hub in the next few years. The National Iranian Offshore Oil Company (NIOOC) this week inked a US$6bln deal with a domestic corporation, Sepehr Energy, to develop the Lavan gas field and build a petrochemical complex in the island within the next 54 months. Lavan field has 9.5 trillion cubic feet of in-place natural gas, 6.2 trillion cubic meters of extractable gas reserves, and 62 mln barrels of condensate. It is expected to produce 750 mln cubic feet of natural gas and 11,000 bpd of condensate. Iranian Offshore Oil Co. (IOOC) Managing Director Mahmoud Zirakchianzadeh announced on Wednesday that the country plans to make a final $20 billion investment in Lavan gas field to make it a petrochemical hub. Zirakchianzadeh said Iran first intended to work with the Polish Oil and Gas Company (PGNiG) to develop the Lavan oil field and sale the product in the form of LNG (liquefied natural gas), \"but after Sepehr Energy Company showed a serious presence and willingness to pick up the project, the plan changed into turning Lavan into a petrochemical hub with a final investment of $20bln\". He added that the product of the $20bln investment will be development of three gas phases and establishment of a petrochemical complex. He said production of gas, gas condensates and liquefactions and petrochemical products in Lavan will start in about 4.5 years\' time. \"We also have plans to bring the gas output of the surrounding fields, including Reshadat, Belal, Resalat and even Khayyam gas fields, to Lavan to turn it into petrochemical products before exporting it,\" the IOOC chief said. Iran\'s Sepehr Energy Co. affiliated to Iran\'s Saderat Bank, one of the major general contractors of energy projects in Iran, inked a lucrative agreement with the IOOC on Tuesday to develop Iran\'s giant Lavan gas field in the Persian Gulf. He announced that Lavan gas field resources can be exploited for the production of 750mln cubic feet of gas, 11,000 barrels of gas condensates and 260,000 tons of petrochemical products. The offshore Lavan natural gas field, which was discovered in 2003, has reserves in place of around 9.5 trillion cubic feet.