Iran’s lack of new marketing activities in the natural gas sector has prevented the country from dominating regional and global markets.
Nasrollah Seifi, the former managing director of Iran Fuel Conservation Company, made the statement on the sidelines of a press conference on the First International Iran Gas Show (IRGS 2018) in Tehran, the website of IRGS reported.
The IRGS 2018 will be held in Tehran on September 1-4 at Shahr-e-Aftab International Exhibition Complex, with about 200 local and foreign firms in attendance.
According to the official, Iran owns about 18% of the world’s gas reserves and its production accounts for over 5% of the global figure. Nonetheless, its share in the global gas commerce is a meager 1%, the reason for which lies in the absence of new marketing strategies.
"Iran’s proven gas reserves are worth €7 trillion," he said, adding that the industry can play a key role in invigorating its weak domestic economy.
Seifi noted that Iran owns a huge grid of gas pipelines of 36,000 kilometers, which are being extended to 45,000 kilometers to allow the delivery of 1,100 million cubic meters per day. It has 15 neighbors that could be potential customers of Iran's gas or transit its gas to major clients, namely China and India, he added.
“Notwithstanding such competitive advantages, Iran does not have a fair share in the global gas trade,” he said.
The expert believes Iran's neighbors such as Pakistan, India, Afghanistan, Azerbaijan, Georgia, Turkey and Iraq could be among top markets for the country’s strategic fuel. Furthermore, Iran could liquefy its gas and export liquefied natural gas to states like China, India, South Korea and Japan.
Gas Industry Emergence
On the dominance of Iran’s oil sector over gas industry, Seifi said the emergence of oil industry in Iran dates back to 110 years ago, while its gas sector is only 50 years old. Gas, as a source of energy, was not as popular as oil until recently and a large number of countries even preferred coal over gas, as gas extraction, storage and transfer needed advanced know-how.
"But things are changing. The world has overcome technological challenges and governments are aware of the value of gas," he said, noting that natural gas is not only cheaper but also cleaner than oil. Moreover, growing concerns over global warming have caused officials to appreciate the value of gas.
Asked about the effects of US sanctions on Iran's gas industry, he added that sanctions have always been in place as the US has refused to fulfill much of its obligations.
International enterprises that signed deals with Iran after the 2015 nuclear agreement did nothing to help develop Iran’s oil and gas industries. A good example is the French energy giant Total, which has recently announced it will terminate its contract.
Seifi stressed that the construction of gas facilities a couple of times bigger than those of the tiny Arab neighbor Qatar is the best strategy to cope with sanctions and help the sector thrive.
