Iran’s Petroleum Engineering & Development Company (Pedec) plans to launch tenders for the construction of a new natural gas liquids (NGL) plant in the Arvandan region of the south-western Khuzestan province.

The 500 million cubic feet a day (cf/d) NGL-3200 plant will consist of two units capable of handling 250 million cubic feet a day (cf/d) of associated gas from oil fields including Darkhovin, Karkheh and the North and South sections of the Azadegan field. It will produce approximately 280 million cf/d of gas that will be used for re-injection or for domestic consumption.

The NGL plant will consist of two units capable of handling 250 million cubic feet a day (cf/d) of associated gas

Approximately 72,000 barrels a day of NGL will be produced, which will be transferred via pipeline to a fractionation unit (CFU-200), where it will be stripped down to its component parts. Ethane, propane and butane will be recovered and stored as feedstock for petrochemical plants at the port of Mahshahr on the Gulf.

Two sulphur units will also be built handling a total of 100 tonnes a day for domestic consumption.

Tenders for the scheme will be launched on an engineering, procurement, construction and financing (EPCF) basis. Construction is expected to take 48 months.

According to contractors in the country, the request to bring financing to the project along with enhanced US and UN sanctions will rule out most foreign companies which now see Iran as a poor investment risk.