Iran is planning to use Iraq’s power grid to export electricity to Syria and Lebanon.
An Energy Ministry official says after starting power generation using natural gas from Forouz B gas field, Iran will be able to sell USD 1.5-2 billion worth of electricity to Oman, Qatar, and the UAE.
The 3.8-billion-dollar gas-to-wire contract for power generation from the field's natural gas was signed last Tuesday between the National Iranian Offshore Oil Company (NIOOC) and MAPNA Company.
Mohammad Behzad, deputy Energy Minister for Electricity and Energy, said Friday that according to the contract, Iran will be able to produce 3,000 megawatts (MW) of electricity per year.
“A small amount [of that electricity] will be consumed in the country and the rest will be exported to neighboring countries, especially the UAE, Oman and Qatar,” he added.
The official said the UAE has been requesting to import 1,000 MW of electricity from Iran for a long time.
According to Behzad, Iran is building a combined-cycle power plant on Qeshm Island whose electricity will be exported to the UAE via an undersea cable.
On Tuesday, February 21, MAPNA Co. and NIOOC, an affiliate of the National Iranian Oil Company (NIOC), signed a 3.8-billion-dollar contract to generate 3,000 megawatts of electricity from Iran's offshore Forouz B gas field in the Persian Gulf.
According to the buyback contract, the field will produce one billion cubic feet of natural gas for generating power after the termination of its first development phase.
In addition, the field will yield a daily total of 10,000 barrels of condensate and 466 tons of sulfur. Forouz B is also expected to produce 1.49 million tons of gas-related liquids per year. The first phase of the field’s development will take 5.5 years.
“Iraq, Turkey and Pakistan in addition to the southern Persian Gulf littoral states, including Oman and the United Arab Emirates are target markets for the electricity produced by Forouz B gas field,” Abbas Aliabadi, managing director of MAPNA, told reporters.
Forouz B gas field is located in the Persian Gulf among three Iranian islands of Kish, Sirri and Qeshm.
Iran had a total annual electricity generation capacity of 53,000 megawatts before 2009, and plans to add 5,000 megawatts to the grid annually.
The country is currently exchanging electricity with Afghanistan, Armenia, Azerbaijan, Iraq, Pakistan, the Republic of Nakhichevan, Turkey and Turkmenistan.