Iran is keen to play a bigger role in the global natural gas market with the help of its private sector, the managing director of National Iranian Gas Company said.
“Boosting gas export is among the top priorities of Sixth Five-Year Economic Development Plan (2017-22), which requires the increased participation of private sector in the key industry,” Hamidreza Araqi was also quoted as saying by Mehr News Agency.
“Such cooperation will not only help the sector’s constant development, but will also boost the production of value-added commodities instead of exporting low value-added natural gas,” he added.
Noting that a stronger presence overseas requires the latest technological know-how, the official said an effective way to fulfill this goal could be through the private sector’s collaboration.
According to Araqi, NIGC is preparing the grounds to cede a large part of its tasks to domestic contractors. He did not elaborate.
Tehran pursues different scenarios to boost the export of natural gas and have a stronger presence in the global market. It is planning to expand gas export to European and Asian markets in the form of liquefied natural gas.
Iranian officials say gas exports, including LNG, should rise to 80 billion cubic meters per year by 2022. Iran is estimated to have the capacity to supply 25-30 billion cubic meters of gas a year to Europe.
However, according to Araqi, infrastructures need to undergo an overhaul and development plans should gain pace. The current infrastructure allows for the supply of up to 40 million cubic meters per day of gas to Turkey and 25 mcm/d to Iraq.
According to Araqi, the Sixth Iran Gas Trunkline (IGAT-6), a major gas pipeline that was completed this month, is promised to help boost the country’s exports to neighboring Iraq.
IGAT-6 includes over 600 kilometers of pipeline, in addition to the installation of five gas compressor stations, at an estimated cost of $2.2 billion.
The country’s daily gas output currently stands at 850 mcm, which are projected to reach 1.2 billion cubic meters by 2025.
However, Iran exports a fraction of its gas output to Turkey, Russia and Iraq because the country is struggling with the unacceptably high domestic gas consumption. Most of the gas output is used for domestic heating and electricity production purposes.
Currently, Iran has over 22.3 million gas subscribers.
Iran holds the world’s largest natural gas reserves, having roughly 17% of global proven gas reserves. Its largest natural gas field, South Pars, supplies more than 50% of the country’s gas demand.
