Plan to Raise Gas Exports to 200 mcm/d

Plan to Raise Gas Exports to 200 mcm/dPlan to Raise Gas Exports to 200 mcm/d

Iran exports around 30 million cubic meters of natural gas per day, but plans to raise the amount to 200 mcm/d in the near future, deputy oil minister for planning and supervision said.

"We need the contribution of private investors [to boost exports]. The Oil Ministry also has plans for marketing Iranian gas in cooperation with the private sector," Mansour Moazzami was quoted by IRNA as saying on the sidelines of a meeting with representatives from Tehran's Chamber of Commerce, Industries, Mines and Agriculture on Tuesday.

Gas exports to neighboring Iraq, Oman and Pakistan is a top priority, while Iran is laying the groundwork for gas shipment to European terminals on the prospect of lifting the sanctions.

Iran and six world powers reached a historic deal on July 14 in Vienna that would limit the Persian Gulf country’s nuclear program in return for removing sanctions on its energy and financial industries.

The official said Iran's gas exports, including liquefied natural gas, or LNG, should rise to 80 billion cubic meters per year by 2021.

Last month, Oil Minister Bijan Namdar Zanganeh discussed LNG supply to Spanish terminals, and from there, to other European destinations. Later that month, LNG exports was discussed with a Polish delegation in the capital Tehran.

"According to a preliminary agreement with the state-run National Iranian Oil Refining and Distribution Company, private domestic companies will undertake part of gas exports," Moazzami said, adding that the Oil Ministry is ready to build refineries and petrochemical complexes with private sector investment.

  South Pars Output to Rise

The launch of four offshore platforms of South Pars Gas Field phases 19-21 by March 2016 will significantly ramp up gas production in the country's biggest gas field, managing director of the National Iranian Oil Company said without elaboration.

"The economic upturn following the lifting of sanctions would help Iran increase its share from the joint field with Qatar," Rokneddin Javadi said on Wednesday.

The field covers an area of 3,700 square kilometers of Iran's territorial waters in the Persian Gulf, adjoining Qatar’s North Field, which measures 6,000 square kilometers. However, Iran is lagging behind Qatar in exploiting South Pars oil and gas reserves, as the tiny Arab neighbor is reportedly drawing 1.6 times more from the joint field.

South Pars holds an estimated 40 trillion cubic meters of natural gas, or equal to roughly 8% of the world’s reserves and approximately 18 billion barrels of condensate.

According to the Iranian Offshore Engineering and Construction Company, gas production from the offshore sector of phases 20-21 will rise by more than 14 mcm/d in four months to meet the country's natural gas demand during the cold season.

SP output accounts for more than 50% of Iran's total gas production capacity, but it is expected to rise to 75% next year.