Energy

Iran's Top Gas Supplier Says Ready for Winter

Iranian Gas Transmission Company is set for stable supplies this winter, the managing director said.

“With the completion of all development projects and routine repairs in the national network, IGTC is prepared for secure gas supplies in winter,” the Oil Ministry news Agency Shana quoted Saeed Tavakoli as saying.

Iran has over 37,000 kilometers of high-pressure gas pipelines, 305 turbo-compressors, 84 pressure stations and other major installations in the key gas sector and is ready to supply subscribers with gas they need in the coming months, he said.

Transmission and distribution pipelines across the country stretch over 350,000 km.

The National Iranian Gas Company data show that 98% of the urban population will have access to natural gas by the end of the current fiscal year (March 2020). Currently, more than 77% of the rural population is connected to the national gas distribution network.

Currently over 1,100 cities, 24,000 towns and 27,000 villages are linked to the rapidly expanding grid. According to plans, by the end of the year gas supply to 3,000 villages will be complete.

The move is in line with the government's goal of linking all urban areas and 90% of the suburban population to the gas network by 2022.

 

Rise in Consumption

Domestic gas consumption rises every year, especially during the cold seasons when temperatures across the country fall drastically and subscribers turn on their heating devices, most of which use gas.

Gas consumption this spring shot up in various sectors compared to the same period last year. Total gas consumption in the first quarter of the year was around 513 million cubic meters a day.

According to a recent report by the Oil Ministry, commercial and agriculture sectors account for 114 mcm/d, 17 mcm/d and 6 mcm/d of the total consumption, respectively. The figures are up 23%, 13% and 30% compared to the spring 2018. 

Referring to other sectors including petrochemicals, power plants and transportation, the ministry said in 2019 consumption had hovered around 56 mcm/d, 300 mcm/d and 20 mcm/d respectively.

Natural gas consumption has shot up by 22% in the petrochemical sector. Power plants and transportation have, however, cut consumption by an impressive 6% compared to a year ago.

 

4th Largest Consumer

Iran holds the world’s second largest gas reserves after Russia. According to BP Statistical Review of World Energy, Iran holds as much as 34 trillion cubic meters of natural gas that is 18% of the world’s proven reserves.

Nonetheless, the country also holds the title of the world’s fourth largest gas consumer, which shows heavy reliance on hydrocarbons and its inadequacy in developing other forms of energy. This is one major issue that has created serious concern among environmentalists and economic experts. 

A report published by BP Statistical Review of World Energy shows that Iran's natural gas consumption in 2017 was 214 billion cubic meters.

To put that into perspective, China, one of the world’s fastest growing economies with over 17 times the population of Iran and nearly six times its land area, consumed 191 billion cubic meters in that year.

 

Increasing Output

Iran’s daily gas output has reached 850 million cubic meters, a major part of which (610 mcm/d) comes from the giant South Pars Gas Field in the Persian Gulf.

South Pars is the world’s largest gas field located on the joint border between Iran and Qatar, covering an area of 3,700 square kilometers of Iran's territorial waters in the Persian Gulf. 

The field is being developed in 24 phases in Iran, many of which are up and running. More than $72 billion has been spent on the giant project since work started two decades ago and investments are forecast to rise to $87 billion.

Last week, two offshore platforms of Phases 22-24 in the field was installed in the sea.

After hook-up operations are completed in the coming weeks the platforms will come on stream and produce 56 million cubic meters of natural gas per day.

Oil Minister Bijan Namdar Zanganeh said last week that Phase 14 would come online by 2021 and Phase 11 development plan would be launched before the current Iranian year is out in March.