Iran’s Gas Industry Could Attract $40b if Sanctions Lifted

Iran’s gas industry could attract $40 billion if sanctions against the country are lifted, Hamid-Reza Araqi, Managing Director of the National Iranian Gas Company (NIGC) said.

Attracting more than $40 billion in BOO and BOT methods in the gas industry will be possible, the Shana news agency quoted Araqi as saying on December 27th.

“Thanks to its strategic situation in the region and taking many advantages, including easy access to the international markets, holding the largest gas reserves, and having suitable infrastructures, the country can readily increase its international relations,” Araqi explained.

“In addition, we can turn natural gas into value-added products or inject it into oil wells in order to boost production and recovery rates,” he said.

Iran needs $100 billion to rebuild its gas industry and has met with European energy giants, Azizollah Ramezani, International Affairs director at NIGC said in June.

“We welcome and appreciate investment by companies; we welcome new technology,” he added.

Half of the $100 billion that Iran requires will need to come from foreign producers, he noted.

Currently Iran produces about 700 million cubic meters per day of enriched gas and plans to increase raw gas production to 1,100 mcm per day by late 2018.