BAKU, Azerbaijan, March 12. The South Pars gas field, Iran’s largest natural gas reserve, reached a production record in December 2024, reinforcing its critical role in the country’s energy sector. Despite aging infrastructure, efforts to maintain pressure and maximize output remain a priority, according to Bill Farren-Price, Senior Research Fellow and Head of Gas Research at the Oxford Institute for Energy Studies (OIES).
"The trend is still upwards, although the operator is having to work harder to overhaul older equipment and install additional pressure maintenance facilities to maximize output as the field gets older," Farren-Price told Trend.
The South Pars field, known as the North Dome in Qatar, is jointly shared between Iran and Qatar and holds an estimated 51 trillion cubic meters of gas, of which 36 trillion are extractable. Iran’s share accounts for 14 trillion cubic meters of gas and 18 billion barrels of gas condensate.
While Qatar is advancing its LNG expansion strategy with large-scale investments in the North Field, Iran continues to focus on meeting its domestic demand. "Qatar has built an array of gas-intensive industries around the North Field, but the most significant by far is LNG. While Iran has some small exports to Türkiye and Iraq, the biggest demand driver is domestic, where gas is used in power, heating, and downstream industries," the analyst explained. However, Iran has struggled with winter gas shortages, leading to periodic power outages.
Despite regional tensions, production from both the Iranian and Qatari sections of the field has remained stable. "Regional tensions have not disrupted production from either side of the field -Iranian or Qatari - and I expect that to continue since both countries coordinate somewhat on their development and economic planning for the resource," Farren-Price said. Both nations manage their shared resource through a dedicated committee.
Today, an event in Tehran marked the signing of key agreements aimed at increasing pressure at South Pars. The National Iranian Oil Company (NIOC) has partnered with four domestic firms - Oil Industries Engineering and Construction Company (OIEC), MAPNA Group, Khatam-al Anbiya Construction Headquarters, and Petropars - to modernize the field’s infrastructure. These agreements, as highlighted by NIOC officials, will involve significant collaboration with the private sector.
With low production costs and concentrated infrastructure, South Pars remains one of the world’s most economically viable gas fields. "Since the cost of production is so low and the infrastructure is so concentrated, the economics of LNG and gas production from the field are some of the most compelling globally," Bill Farren-Price emphasized.