IRAN NEED GAS

ENERDATA - 12 March 2025 Iran has signed US$17bn in contracts with domestic companies to upgrade the offshore South Pars gas field, located in the Persian Gulf and shared with Qatar. The scheme intends to boost pressure in the South Pars gas reserves to avoid a depletion on the Iranian side of the field. The National Iranian Oil Company (NIOC) has thus signed contracts with four Iranian companies for this scheme, namely Petropars Group, Khatam Al-Anbiya Construction Headquarters, Oil Industries Engineering and Construction, and MAPNA Group.

According to Iran’s oil ministry, Qatar has already implemented pressure enhancement schemes, boosting production on Qatar’s side of the field (called North Dome). However, the pressure difference would displace some of the gas on the Iranian side towards the Qatari side, thus explaining Iran’s intention to also implement pressure boost projects on its side of the field (called South Pars).

From 2027 onwards, the South Pars field reserves could decrease by 28 mcm/year, and from 2029 onwards this decrease could reach 42 mcm/year. The initiative from Iran is also aimed at improving gas production at the site.

In March 2024, the Oil Ministry had already signed agreements to boost production and pressure at the South Pars field, which is the world’s largest gas field, holding an estimated 51,000 bcm of in-situ natural gas and some 50 Gb of natural gas condensates. In January 2025, Iran announced plans to invest between US$110-120bn to increase its oil and gas production capacity, as well as prevent the decline of its national production, including US$18bn in seven pressure-boosting projects on the South Pars natural gas field to increase gas volumes.

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