Iran's gas output growth clarified as New Year looms

Iran's gas output growth clarified as New Year looms

By Dalga Khatinoglu

As Iran's fiscal year nears its end next week, statistics announced by Iran's officials are making the country's gas production growth more transparent.

Naser Ebrahimi, Director of Gas Distribution Department of National Iranian Gas Company (NIGC) told Shana March 16, Iran supplied 170.64 billion cubic meters (bcm) of the sweet gas to various sectors during the past 360 days.

Iran announced on March 15 that currently about 583 mcm/d of gas went to housing, industrial and power sectors. So, it's expected that the country's total sweet gas consumption will stand at about 173.5 bcm/d during the current fiscal year, which ends on March 20.

According to Ebrahimi's statement, the gas consumption in all sphere increased during the current year.

Sweet gas consumption

Current year

bcm (360 days)

Current year estimate for 365 days (bcm)

Last year

bcm

Change Y/Y

bcm

Housing sector

89.28

91

88.9

2.1

Industrial sector

32

32.45

29.8

2.65

Power plants

49.32

50.5

36.8

13.68

Re-injection

33.48

33.9

32.9

1

Flaring

11.5

11.7

11.7

0

Export

10

10

9

1

Total

225.58

229.55

209.1

Regarding the fact that the country's net gas trade is about 2.5 bcm then the country's total sweet gas production was at least 175.5 bcm during the current year.

Iran aims to increase the raw gas production level by 100 mcm/d next year, then it's expected that the country's raw gas production will stand at 700 to 760 mcm/d and depends on the time needed for maintenance, pauses, etc.

The current production is still below the level needed for domestic consumption. Iran needs at least an additional 60 mcm/d to re-inject into oil fields, as well as the same volume to supply power plants to cut liquid fuel burning in the electricity generation sector.

On the other hand, the current winter was the warmest winter in several years, thereby pushing the housing sector's gas consumption quite lower. For instance, the housing sector consumed about 340 mcm/d of gas on March 15, about 26 mcm/d less than the same day last year.

Iran also is preparing to start exporting 5 mcm/d of gas to Iraq in late March and this volume will increase to 25 mcm/a in two years.

Regarding the country's projected gas production growth in the next year, it seems Iran will face another gas shortage as well.

Iran ranks first in term of possessing the gas reserves in the world with holding 33.6 trillion cubic meters of natural gas.

Sohbet Karbuz, Director of Hydrocarbons, France, Mediterranean Energy Observatory (OME) told Trend March 16 that "in the short to mid-term I do not see any meaningful, if any, exports from Iran".

Iran inaugurated phase 12, the biggest phase of the giant South Pars gas field, but not completely during current year. The phases 15, 16, 17 and 18 have come operational as well, but they also haven't completed yet.

"The inauguration of South Pars phase 12 which will increase domestic gas production (by 82 mcm/d) and declining imports from Turkmenistan show that Iran may soon have surplus which needs to find export market. This assumes of course that domestic demand will not increase substantially".

Karbuz says that "projects for exports to Pakistan, Iraq and Oman are not advancing as fast as expected. This means that the easiest way for Iran to increase its gas exports is to or through Turkey. To Turkey is unlikely because of the price tag Iranian gas carries. Iranian gas is the most expensive gas Turkey imports. Similarly, gas exports to Europe through Turkey would not be likely because Iranian gas is not competitive. A substantial reduction or change in pricing mechanism would alter this situation. However, there is also the political aspect, i.e., the future of sanctions. As far as global markets are concerned, I do not expect Iran would be able to export gas via LNG before 2025".

Edited by CN

Dalga Khatinoglu is an expert on Iran's energy sector, head of Trend Agency's Iran news service.

Follow him on @dalgakhatinoglu

Azerbaijani Embassy in Turkey opens hot line in connection with earthquake in Izmir
Azerbaijani Embassy in Turkey opens hot line in connection with earthquake in Izmir
Petkim’s products exported to 78 countries abroad
Petkim’s products exported to 78 countries abroad
STAR Refinery’s investment value to near $7B
STAR Refinery’s investment value to near $7B
Loading Bars
Latest
Armenia's attack against Barda is crime against humanity perpetrated in widespread manner - Azerbaijani embassy in Canada
Azerbaijani embassy to Canada condemns speeches in House of Commons as they support war crimes
Armenia-inflicted damage on culture in occupied Azerbaijani territories would soon be irreversible - Modern Diplomacy report
Situation at front - under Azerbaijani Armed Forces’ control - Defense Ministry
Fire brigade extinguishes fire in Azerbaijan’s Goranboy due to Armenian Armed Forces’ artillery strikes
I don't know how efficient meetings are going to be now with regard to Armenian leadership - President Aliyev
President Ilham Aliyev's response call for Armenia: Recognize Nagorno-Karabakh
Azerbaijani PM phones Turkish VP regarding recent earthquake
Turkey already engaged in Karabakh settlement, whether Armenia likes it or not - President Aliyev
President Aliyev says Pashinyan lies about Pakistani, Turkish forces fighting for Azerbaijan
President Aliyev talks online footage of armed clashes, Azerbaijan's military potential
If Armenia got sanctions imposed on it as with Iraq, conflict would've been resolved long ago - president
Armenian side has no moral norms, no honor or dignity - President Ilham Aliyev
News about earthquake in Turkey’s Izmir saddens Azerbaijan – FM
If someone willing to create second Armenian state, let them give away part of their own territory - Azerbaijani president
When three nuclear powers cannot exert pressure on Armenia, this raises questions - President Aliyev
Azerbaijani Embassy in Turkey opens hot line in connection with earthquake in Izmir
Combining efforts of Turkey and Russia to benefit region - President of Azerbaijan
What's happening now - results of Armenian PM Pashinyan's activity, says Azerbaijani president
President Ilham Aliyev expresses condolences to President Recep Tayyip Erdogan
Missile attacks on Barda by Armenian Armed Forces heavily damage local business entities (PHOTO)
Every human life is priceless, our losses are minimal - Azerbaijani president
If Azerbaijan agrees on political settlement, Armenia must withdraw from Kalbajar, Lachin and part of Aghdam immediately - president
Armenia says one thing to mediators, then does something completely different - President Aliyev
Azerbaijan destroys 2 more 'Smerch' rocket launchers of Armenian troops - MoD (VIDEO)
President Ilham Aliyev talks Armenian troops killed during recent military clashes
Georgian Tegeta motors opens “Toyota center” in Batumi
Armenia refuses to hand over body of 84-year-old Armenian to his family
Uzbekistan increases profitability of its textile exports
Kazakhstan's Nostrum Oil & Gas reveals revenues forecast for 9M2020
Meeting between FMs of Azerbaijan, Armenia kicks off in Geneva
Russian leading list of countries of main wine importers to Georgia
Azerbaijan shows footage of liberated Khudaferin village (VIDEO)
Provocation of Armenian delegate suppressed during EU video conference (PHOTO)
MFA receives no info on Azerbaijani citizens among quake casualties in Turkish Izmir yet
President of Turkmenistan made video statement at International Forum for Northern Economic Cooperation
US expert warns Europe, says Armenian terrorism must be stopped before too late
Azerbaijan reveals data on maritime cargo movement for 9M2020
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
MyWayAirlines to conduct charter flight Tbilisi-Warsaw on November
Kazakhstan’s Nostrum increases 2020 oil forecast despite COVID-19 concerns
Georgia reveals volume of snail meat to be exported to Italy
Uzbekistan introduces automated system for monitoring liquefied gas supply to population
Revival of electronic coupons in Iran to hit low-income families in Iran - economist
Armenia attacks Azerbaijani settlements mainly from its territory
Azerbaijan puts several mercenaries brought by Armenia to Karabakh on int'l wanted list
Shelling of Barda by Armenian troops - flagrant crime against humanity, says Russian expert
Georgia establishes Agro Business Association
Azerbaijan's Constitutional Court appeals to foreign constitutional courts
Uzbekistan ranks first in gold sales in 3Q2020 - World Gold Council
Estimated real gross domestic product declines in Georgia
Time deposits volume surges in Kazakhstan year-on-year
Turnover on payment cards in Azerbaijan increases
Turkmenistan's Turkmenbashi Oil Refinery to increase oil refining depth
Number of people infected with COVID-19 in Iran exceeds 600,000
Kazakhstan's Almaty launches production of environmentally-friendly batteries
Azerbaijani president instructs to assess damage caused to Azerbaijan by Armenia – aide to president
Kazakhstan's oil refineries decrease oil refining volumes as COVID-19 pandemic hits demand
Armenian Armed Forces attacked strategic targets in Azerbaijan - Prosecutor General
Azerbaijan puts high-ranking Armenian officials on int’l wanted list
Azerbaijan puts foreign fighters recruited by Armenia on international wanted list
Azerbaijan appeals to European Court on Human Rights - aide to First VP of Azerbaijan
Bakcell supports the residents of Barda
Petkim’s products exported to 78 countries abroad
Central Bank of Azerbaijan decides to keep discount rate unchanged
Kazakhstan increases export to China despite COVID-19
Military tribunal must be organized to assess Armenia’s crimes – Assistant to Azerbaijani president
SOS Children’s Villages International to do everything to support children during Karabakh conflict
7 families killed as result of Armenian terror against Azerbaijan – Azerbaijani prosecutor general
Armenia commits environmental terror against Azerbaijan - Ministry of Ecology (PHOTOS)
Macroeconomic stability remains steady in Azerbaijan - Central Bank chairman
Azerbaijan raises import of cars in 9M2020
Azerbaijan confirms 480 more COVID-19 recoveries
President Ilham Aliyev: Azerbaijani Army liberates 9 villages of Jabrayil, Zangilan and Gubadli districts
Passenger transportation decreases in Azerbaijan due to COVID-19 pandemic
STAR Refinery’s investment value to near $7B
Azerbaijani prosecutor general reveals civil casualties, injuries inflicted by Armenia
Kazakhstan's KazMunayGas reports decrease of oil transportation volumes
General Prosecutor's Office discloses crimes committed by Armenian Armed Forces against Azerbaijan
Temporary special administrations to be established in Azerbaijan`s territories liberated from occupation
Azerbaijani army destroys missile-artillery warehouse of Armenian Armed Forces - MoD (VIDEO)
Iran talks agricultural exports to Iraq despite restrictions
Kazakhstan's national oil company faces output decrease at country's major oilfields
Euro zone GDP jumps more than expected in third quarter q/q, prices fall
OSCE MG meeting on Karabakh conflict in Geneva to be closed for media
Permissions granted for building construction down in Georgia
Uzbek Ministry of Finance projects revenues, expenditure of consolidated state budget
Turkmenistan privatizing number of facilities to increase private sector's share in economy
Iran to allocate funds for projects in Malayer city
Khaf-Herat railway between Iran, Afganistan to commence by mid-November
Azerbaijan doesn’t succumb to provocations, responding to aggressor on battlefield - Israeli expert
Azerbaijani Prosecutor General's Office assesses damage done from Armenian vandalism
Iran's IRGC provides support to COVID-affected families
Fish production in Iran's Amlash city increases on annual basis
UK condemns continued shelling of civilian areas following attack on Azerbaijani Barda
Russian Export Center talks about exports to Azerbaijan
Glencore reports copper extraction volume decrease in Kazakhstan
Azerbaijan may expand business loan programs - Central Bank
MoD says Armenia's info on shooting down Azerbaijan's UAV - lie
Azerbaijan to develop its lands liberates from occupation via its own sources
All news