Iran likely to get rid of its gas shortage

Business Materials 10 May 2017 15:20 (UTC +04:00)
Iran likely to get rid of its gas shortage

Baku, Azerbaijan, May 10

By Dalga Khatinoglu – Trend:

Iran increased gas production by 25 billion cubic meters (bcm), or 9 percent to 285 bcm, during the last fiscal year (ended March 21), but its domestic demand growth rate has increased as well.

Almost the entire growth occurred in the second half of the year on phases 17-21 of the South Pars gas field, that Iran shares with Qatar.

The total nominal capacity of these phases is 54 bcm and they are expected to become full operational in the first half of the current fiscal year.

Mehdi Jamshidi Dana, dispatching director of National Iranian Gas Company told Shana news agency May 9 that during the last fiscal year, Iran increased gas delivery to power plants by 7 percent, while the same growth happened in gas supply to housing and industrial sectors.

Iran should have increased gas usage in power plants by 14 percent to 65 bcm, but it supplied only 61 bcm due to gas shortage in the housing sector, especially because of cutting Turkmen gas flow to Iran since January 1, 2017 due to longed delayed $2 billion debt.

Turkmenistan had exported 9 bcm of gas to Iran in 2015, but it halved in 2016 and stopped since the beginning of the current year.

The gas flow to petrochemical and some industrial plants also experienced disturbs during some weeks of winter.

The gas shortage in the country during the last fiscal year occurred mostly due to connecting more cities and villages to the gas network. Iran extended gas grid by 700 km during the last fiscal year.

  • Yearly expansion of Iran’s gas grid

Iran spent about $1 billion on expanding the grid and adding 24 pressure boost compressors last year, while for the current year, some $1.25-1.55 billion investment is planned.

Jamshidi Dana said that the country’s gas demand would increase by 80-90 mcm/d (around 30 bcm) during the current fiscal year. Regarding that the full operational of phases 17-21 would add more gas to output, it seems Iran would not face gas shortage this year.

Gas consumption

2014/2015 (bcm)

2013/2014 (bcm)

Housing sector



Industrial sector



Power plants






Gas lose in grid












Sweet gas production






  • According the latest updated yearly report of oil ministry

Iran’s total gross gas output reached 285 bcm during the last fiscal year and the volume would increase at least by 20 bcm during the current fiscal year.

Iran injects about 25 bcm into old oil fields to maintain crude oil production, while about 11 bcm is flared and the 9 bcm is lost in the gas grid.

About 80 percent of Iran’s active fields are in their second half life and during the current year, their production would decrease 300,000 b/d, according to Ali Kardor, CEO of National Iranian Oil Company.

Iran needs to triple gas re-injection to fields, but according to production and demand growth rates, it seems the country wouldn’t be able to increase the re-injection volume.

According to the highlighted plans for the current year, it doesn’t seem Iran would decrease gas flaring nor lose volume in the current fiscal year.

Therefore, Iran would be able only to get rid of gas shortage in housing, power and industrial sector after a decade.


Dalga Khatinoglu is the head of Trend Agency’s Iran news service, follow him on Twitter: @dalgakhatinoglu