Iran Needs $35 bn For Gas Sector Development

Iran needs to invest almost $30-35 billion till 2015 for development of its gas sector, Shana news agency said citing Javad Oji, managing director of National Iranian Gas Company (NIGC).

The funds are likely to come from both government and private sector.

 “Nearly 65 percent of the projects’ costs are related to the procurement of equipment. The gas industry is spending 14 billion dollars every year on procurement of its equipment. Iranian manufacturers have to become more active,”  Oji said at a seminar at Tehran Oil Show.

Oji said independent and shared gas fields are currently producing more than 640 million cubic meters of gas which, he added, is planned to reach 1.3 billion cubic meters in two or three years.

He said more than 44,000 kilometers of high-pressure pipeline and 69 pressure-boosting facilities are supplying 750 million cubic meters of gas for domestic consumption. He said the domestic consumption is predicted to reach one billion cubic meters by 2015.

By 2015, he said, Iran would have 200 million cubic meters of surplus gas to be allocated to injection and exports.