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Iran to have fourth largest gas output expansion by 2040

Oil&Gas Materials 10 December 2018 14:21 (UTC +04:00)

Baku, Azerbaijan, Dec.10

By Leman Zeynalova – Trend:

Iran’s marketed gas production will expand significantly by around 180 billion cubic meters (bcm) to more than 410 bcm by 2040 and this will be the fourth largest expansion of gas production in the world over the outlook period, Trend reports citing the Gas Exporting Countries Forum (GECF).

“This major development maintains the country’s position as the third largest gas producer in the world. Modelling results also suggest that more than 11 percent of global gas production expansion over the outlook period will be sourced from Iran which means that the country will be producing 42 percent and 8 percent of Middle East and total world gas production respectively in 2040,” GECF said in its 2018 Global Gas Outlook.

The organization believes that this expansion will give Iran a huge boost in gas export capacity, both through LNG and pipelines.

“The outlook for Iran’s natural gas production is very promising. The prosperity is mostly the result of concerted efforts in the development of the South Pars field, which experienced a major breakthrough as the country launched five phases early in the fiscal year. In this context, the country signed a contract with a partnership headed by Total to develop Phase 11 of the South Pars field. Total withdrew from the project due to the sanctions imposed by the US, with its share being taken by CNPC. This phase is expected to bring an increase of 20 bcm above current production volumes by 2021,” said the report.

Other efforts, like the MoU signed with Saipem concerning the development of the Toos gas field project, and the MoU signed with KOGAS over the development of the Balal gas field, indicate that production of Iranian gas will continue to surge over the medium- and long-term, according to GECF.

Iran holds around 18 percent of the world’s proven natural gas reserves, totaling approximately 34 trillion cubic meters. More than 60 percent of the country’s natural gas reserves are located offshore, and around 80 percent of total proven gas reserves are non-associated fields.

Iran’s largest gas field is the South Pars field, which comprises more than a quarter of its total proven reserves and accounts for 65 percent of the country’s current natural gas production. This giant field is the world’s largest gas reserve and is a non-associated gas field located off the southern coast of Iran.

Other major gas fields in Iran include Kish, North Pars, Tabnak, Forouz and Kangan. High concentrations of condensate in Iran’s natural gas fields give Iranian gas reserves an advantage and make exploration projects even more profitable.

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Follow the author on Twitter: @Lyaman_Zeyn

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