The South Pars field plays a major role in enhancing electricity production in Iran, in addition to its main role as one of the largest gas fields in the world. However, the recent challenges facing production operations in the field are pushing Tehran to reduce its dependence on natural gas and to invest in renewable energy.
Thermal power plants produce more than 95% of Iran’s electricity, according to the Deputy Director of Planning at the Thermal Electricity Company, Amir Dodabinjad. Therefore, the country gives these units priority in the annual comprehensive planning processes to ensure the completion of the construction of power plants in the appropriate period.
The Iranian Ministry of Energy maintained the maintenance of power plants according to a strict schedule, to enhance their production capacity during the hot season of the year.
The reality of the Iranian electricity sector
Iran’s high dependence on thermal power plants for electricity production is linked to the importance of its natural gas fuel, as the electricity generation industry has been developed through planning efforts and effective maintenance procedures conducted by the Tehran government and the relevant agencies.
These measures aim to ensure the availability of electricity supplies in the country at constant rates, and to deal with problems that result from high temperatures.
Iran currently consumes more than 72,000 megawatts (72 gigawatts), of which 54,000 megawatts comes from the production of thermal power plants, while hydroelectric, renewable, and nuclear plants, diesel units, and small-scale generators contribute to the remaining production, according to Amir Dobinejad.
Natural gas facilities in the South Pars field. Photo courtesy of Bloomberg
Tehran seeks to bridge a gap between electricity production and consumption in the country, equivalent to 10,000 megawatts (10 gigawatts), through measures and plans included in Dodabinjad’s Seventh Development Plan.
With the growth of electricity consumption expected for the next 5 years, Tehran needs to build a new power plant with a capacity of 35 thousand megawatts, and its investments are estimated at 18 billion euros.
(Euro = 1.10 USD)
Amir Dobinejad pointed out that the average efficiency of thermal power plants in Iran at the present time is 39.5%, which is lower than the global average efficiency by about 1%.
He said that there is a tendency to take advantage of the maximum capacity available to increase the efficiency of the stations, by building steam units inside the gas-powered stations as a substitute for the old and dilapidated power stations.
The role of the South Pars field
Iran has the second largest natural gas reserves in the world, according to the head of the Federation of Iranian Energy Associations, Seyyed Hashem Uri, and the joint South Pars field alone contributes half of these reserves.
The South Pars field plays an important role, providing nearly 70% of Iranian gas and contributing to generating 50% of the country’s electricity, making it a major artery for the energy sector in Iran.
The South Pars field shared with Qatar faces several challenges, including the imbalance between the energy sectors, and as one of the largest gas fields in the world, maintaining constant pressure is necessary to maintain gas production, according to Uri.
The life span of the field wells leads to pressure reduction, despite the annual increase in gas demand by 12%.
To avoid these challenges, Iran plans to drill 35 new wells, to ensure the maintenance and increase of the production rate of the South Pars field.
Tehran’s plans include launching a program to develop the rate of pressure in wells to maintain production, especially after the average pressure in the old wells of the field decreased to 3,500 pounds per square inch, down from 5,200 pounds per square inch, recently.
Dealing with pressure problems
Despite the huge reserves of the joint South Pars field of natural gas, the decrease in well pressure with the aging of the field increases the difficulty of maintaining extraction rates.
The Iranian authorities concerned with the energy sector are looking for technologies that reduce the rate of pressure decline and maintain the rate of gas production. Perhaps one of the motivating strategies for wells is the expansion of the use of (hydraulic) fracking.
Pars Development Phase 11 – Image via Oil & Gas Middle East
On the other hand, Tehran may tend to spend more investments to drill new wells in the field, in an attempt to compensate for the current decline in the production of some wells, but it seems that the problem of low pressure wells is somewhat complex, and requires huge expenditures on research and technology, in addition to international synergy to solve it.
As the South Pars field is a joint field with Qatar in the same scope, cooperation with other countries and international energy companies is essential to increase the field’s production as much as possible, through the development of creative solutions.
The difficulty of resolving pressure problems in the field shows the need for Tehran to apply sustainable energy management techniques, especially since the country’s dependence on a single gas field to provide its energy needs to a large extent constitutes a future risk, if production is interrupted.
Renewable energy.. Will it be an alternative?
Iran should seek other energy sources and diversify resources to ensure long-term energy security and stability.
Iran may reduce its reliance on natural gas and move towards building a stable, permanent and flexible energy system at the same time, by investing in renewable energy sources, including solar and wind energy.
Reducing the pressure drop in the wells of the South Pars field may be offset by the adoption of renewable energy options, which in turn contribute to combating climate change and preserving the environment.
We cannot ignore Iran’s need for innovative strategies that contribute to managing gas fields and developing techniques to deal with the problem of low pressure in South Pars wells.
Tehran’s commitment to providing solutions to energy problems is a catalyst for research aspects that result in the development of drilling and stimulation practices, as well as an effective increase in the rate of gas extraction.
Iran’s international cooperation with its allies and energy companies opens the way for exchanging information and skills, and receiving new ideas through which it can continue efforts to maintain gas production and increase the rate of electricity generation.
Tehran’s involvement in dealing with the problems of the energy sector will push towards major technical development, as well as building a diversified portfolio, which will reflect positively on the global energy market and guarantee a secure energy future.
Dependence on gas
As Iran’s investment in renewable energy sources, including solar and wind energy, grows, the country’s dependence on natural gas decreases, and a more robust and sustainable energy infrastructure continues to be built.
This measure would contribute to protecting the environment and combating climate change, along with limiting the effects of depressurization of the wells of the South Pars field shared with Qatar.
The chart below – prepared by the specialized energy platform – monitors the gradation of Iranian gas reserves from 1980 until last year 2022:
Iran’s endeavor to address the problems of the energy sector may push towards improving technologies, developing management of gas fields and means of extracting supplies as well. Therefore, joint work with global partners and energy companies to overcome production challenges in the joint South Pars field is necessary to exchange information and reach new solutions.
Sustainable means, other energy sources, and partnerships ensure Iran’s energy future, benefiting both the local community and the global market.
The production of the South Pars field of natural gas is the most important source to meet the Iranian demand for energy, as it plays a very important role in the production of electricity.
Given that Tehran has the world’s second largest natural gas reserves, it relies heavily on the field to meet energy demand.
Save the electricity sector
Iranian thermal power plants are a source of more than 95% of the country’s electricity, and gas supplies from the Pars field contribute to operating the majority of the stations. Therefore, the field constitutes an “artery” for the energy sector’s infrastructure, providing 70% of Tehran’s gas needs, and 50% of electricity. .
The natural gas reserves in the South Pars field constitute a reliable source of electricity generation at reasonable prices, which contributes to maintaining Iranian energy security and reducing dependence on imports.
On the other hand, the field supports national sovereignty and economic stability in the country, but the challenges of low pressure in some wells indicate the need for Iran to implement effective and sustainable management strategies for the energy sector.
This coincides with providing the country with investment opportunities in terms of developing technologies and exploring alternative sources that diversify Tehran’s energy portfolio and ensure a more flexible and sustainable future.
Therefore, how to address the challenge of low pressure from field wells is crucial to ensuring a stable and reliable gas supply, and a secure power source for electricity generation.
* Dr. Omod Shoukry, senior advisor on foreign policy and energy geopolitics, is the author of “US Energy Diplomacy in the Caspian Basin: Changing Trends Since 2001.”
*This article represents the opinion of the author, and does not necessarily reflect the opinion of the energy platform.
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2023-07-31 18:01:24
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