Iran: Gas Production Up, Gas Consumption Up
For first time since 2009, Iran’s gas production experienced a double-digit increase. However, production continues to fall short of demand.
Hassan Montazer Torbati, planning director of the National Iranian Gas Company, announced that total dry gas production reached 160 billion cubic meters during last nine months of current fiscal year, indicating a 12% increase compared to the same period last year. Iran’s fiscal year started on March 21, 2014.
Iran did not commence any new upstream gas projects from 2009 to 2013, but in early 2014 it inaugurated the phase 12 of South Pars gas field.
Initial Phase 12 production of 12.5 million cubic meters of gas per day (mcm/d) was subsequently increased to 50 mcm/d in June 2014 with the launch of a second platform. On January 5, 2015, the third platform of Phase 12 became operational and currently the total gas production is about 60 mcm/d. The final production capacity for the phase is projected to reach 82 mcm/d by March.
Iran also commenced the phases 15 and 16 of South Pars with restricted production amount during last months. Islamic Republic planned to raise the gas production levels from the current 575 mcm/d to 600 mcm/d until March 2015.
On the other hand, Iran’s Oil Minister Bijan Namdar Zanganeh recently said last the country’s enriched gas production level reached 660 mcm/d. Iran currently delivers about 35 mcm/d of enriched gas to petrochemical plants, refines 570 mcm/d and re-injects the remained volume into old oil fields.
Despite the increase in production levels, Iran’s consumption level also rose significantly.
Montazer Torbati said that during last 9 months, some 42 bcm of gas delivered to power plants, a 10 bcm increase compared to the same period in previous year. Iran also increased gas exports by one bcm to 8 bcm during this period
Iran is currently delivering 110 mcm/d of gas to power plants and 82 mcm/d to industrial sector, however deliveries may be limited in the upcoming period to avoid gas shortage in housing sector during winter. It is expected that demands from Iran’s housing sector, which presently consumes 400 to 405 mcm/d of gas, will reach 450 mcm/d next week.