National Iranian Central Oil Company’s (NISOC) $1.45bn natural gas liquids plant is 20 per cent complete and on-track to be completed in 2019, according to an industry source.

Engineering work for the NGL-3100 facility has been finished and 10 per cent of the procurement has been completed, says the source.

The plant is being near oil facilities in Cheshmeh Khosh, a town in Iran’s Ilam Province, and has been delayed. Previously it was expected to be completed in December 2017.

One factor that has led delays is a problem connected money transfers, according to the source.

The project was meant to receive funds from the National Development Fund.

“These are internal money transfers – this is not a problem connected to sanctions,” said the source.

“At the moment, it looks likely that he project will be completed in 2019 – but there could also be more delays in the future.”

When complete the facility will gather the associated gasses from the North Dezful oil fields then separate the impurities and various non-methane hydrocarbons to produce pipeline quality dry natural gas.

These fields include: Cheshmeh Khosh, Paydar, West Paydar, Dana, and Dehloran.

Currently the associated gasses from these fields are being flared.

The light gas yields from the plant will be injected into Dehloran and Cheshmeh Khosh oilfields.

Ultimately it is expected that the non-methane hydrocarbon output from the plant will be used to feed the Dehloran Sepehr Petrochemical Industry Company’s planned $800m Petrochemical Complex.

This project was put on-hold in mid-2017 due to financial problems.

The main contract for the petrochemical project was awarded in 2014 to a joint venture of the Chinese contractors AVIC and HFEC.

The scope of the NGL-3100 project includes a NGL recovery trains, pumping systems, a 150MW/H gas power plant, a high pressure electrical power grid consisting of transmission lines and stations, feed and product pipelines.