CRU: New Sulphur Supply From Qatar and Iran is Some Way Off

LONDON, July 27, 2017 /PRNewswire/ --

Both Iran and Qatar have announced significant expansions in gas production from the shared field South Pars/North Field, in the Arabian Gulf.

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Iran has partnered with Total/CNPC to develop Phase 11 of South Pars. Qatar has announced its plans to boost LNG supply by 30%. The expansions will be a significant source of new sulphur supply when they start producing but technical difficulties, political instabilities, and economic sanctions warns us to be cautious about adding this new sulphur supply to our five-year outlook.

The South Pars/North Field natural gas field is located in the Arabian Gulf and spans the maritime borders of Iran and Qatar. The field has recoverable gas reserves of 1,260 Tcf which is split 40:60 between Iran and Qatar. This field accounts for the major share of each country's total gas reserves and the two countries are a major share of global gas reserves; Qatar accounting for 13% of total gas reserves and Iran at 18% of total global reserves. Since start up in 2002, Qatar has increased gas production by 500% from 2.9 bcf/d to 17.5 bcf/day in 2016. Gas supply in Iran started from a higher base with growth of 150% from 5.8 bcf/d in 2000 to 19.5 bcf/d. Sulphur supply has grown in line with increased gas output with Qatar production up from 0.23 million tonnes in 2002 to 2.27 million tonnes in 2016 and Iran supply up from 1.20 million tonnes in 2002 to 1.59 million tonnes in 2016.

Read the full story: http://bit.ly/Qatar-Iran-Sulpur-supply

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