The state-run National Iranian Gas Company is determined to expand its presence in the world market and advance Iran's gas exports, the managing director of NIGC said on Tuesday.
Outlining his company's plans for the current fiscal that started on March 21, Hamidreza Araqi added that "meeting [domestic] gas demand and revising the current structures are also high on NIGC's agenda", Shana reported.
The official said gas export to the Iraqi city of Basra is set to commence soon.
According to Araqi, Iran's gas export to Iraq is set to reach 50 mcm/d this year, 25 mcm/d to each of the two cities.
"If the goal is achieved, Iraq will become the biggest importer of Iranian gas by overtaking Turkey," he said.
Iran is currently exporting gas to Baghdad from Naftshahr in Kermanshah Province through a pipeline diverging from the Sixth Iran Gas Trunkline (IGAT-6).
IGAT-6 is a major component of the national gas grid that, according to Araqi, will have the capacity to transfer 110 million cubic meters of gas per day from South Pars Gas Field in the Persian Gulf to southern and western regions.
About 12 mcm/d of gas per day are currently supplied to Baghdad, making Iraq the second largest gas customer of Iran after Turkey which, according to NIGC's head, "currently imports 30 million cubic meters of natural gas from Iran".
Basra, Iraq's second largest city, also needs Iranian gas to feed its power plant as part of efforts to reduce outages that have turned into a persistent source of public discontent and the export will commence soon.
Supplying Domestic Demand
The NIGC head noted that Iran is making every effort, including by raising output and revising current policies, to meet domestic gas demand throughout the year, especially in times of output-consumption imbalance. According to the official, Iran's gas output amounts to 230 billion cubic meters per annum, which will rise to 290 bcm by March 2019.
With the implementation of the giant South Pars Gas Field's phases in the Persian Gulf, such a prospect appears to be attainable.
Over two-thirds of Iran’s gas output come from the South Pars mega project that is being developed in 24 phases.
South Pars is the world's largest gas field shared by Iran and Qatar in the Persian Gulf. Iran is drawing about 570 mcm/d from the field.
Araqi added that increasing ethane output from 1.3 million tons to 8.4 million tons per year is on the company's agenda over the next three years while liquefied petroleum gas production will reach 12 million tons in the period.
"Plans are in place to boost condensate output from 226 million tons to 360 million tons and annual sulfur production will hit 2 million tons in three years," he said.
Iran holds 34 trillion cubic meters of natural gas reserves, the largest in the world ahead of Russia with 32.6 trillion cubic meters, according to BP estimates.
