National Iranian Gas Company (NIGC) dispatching system officials have forecasted domestic gas consumption to exceed 650 mcm/d. Iran’s domestic sector is witnessing an annual 60 mcm/d hike in gas consumption. That is while Iran is currently recovering 977 mcm/d of rich gas and delivering 843 mcm/d to the national gas grid.

Maximum Capacity

Currently, winter arrangements have been made in Iran's gas transmission network and all pipelines are transmitting gas at maximum capacity, repairs and technical inspection of pipelines and refineries have been done and all units are fully prepared for stable gas transmission. It should also be noted that although the daily production of gas has increased by 25 mcm compared to last calendar year, the consumption in the domestic and commercial sectors has increased abnormally, and this has caused the Petroleum Ministry to focus on maximum concentration on the production and transmission of gas to the national network during winter.

Owji said recently that $70 billion in investment was needed over a period of 10 years to help increase gas production capacity in Iran. Therefore, Iran has called for investment by either local or foreign financiers.

Gas Refineries Fully Ready

In 2007, there were 9 gas refineries with a total production of 470 mcm/d in Iran. By March 2022, the number of refineries reached 22 with a production capacity of 850 mcm/d, which represents a 70% growth. In the first seven months of the current calendar year, NIGC defined and executed an intensive overhaul program of refinery equipment for 18 gas refineries that are currently operational in order to ensure the winter with gas supply. By carrying out this operation, the purpose of which is to maintain the system in efficient conditions, the reliability in the refineries will increase, and in this way, the amount of processing may be maximized to guarantee clean, safe and efficient transmission of gas.

3rd Natural Gas Producer

In 2020, Iran produced a total of 250 bcm of gas, which is equivalent to 6% of the gas produced in the world. According to OPEC Annual Statistical Bulletin, in 2021, Iran’s natural gas exports increasedabout 60%, and at the same time, Iran’snatural gas production increased by 3%. Iran is the third largest gas producer in the world after the United States and Russia.

Iran has the world’s second largest proven gas reserves, and the country’s gas reserves in 2021 remained unchanged from the previous year at the level of 33.98 tcm. Based on this, the total gas production in the world in 2021 has grown by 5.8% compared to the preceding year. Comparison of Iran’s natural gas production and consumption statistics among the countries of the region shows that despite producing 36% of gas in the Middle East, Iran also consumes 42% of natural gas in the Middle East. On the other hand, with the inauguration of the 13th administration in Iran, negotiations to restore gas relations with Turkmenistan began once again to better manage the country's energy crisis in the winter in the northeastern and western provinces of the country.

South Pars Output Up 6%

Gas production from South Pars increased 40 mcm/d to reach 740 mcm/d by March 2023. Thanks to increased production from phases 11, 13 and 16, the field would experience a 6% output hike this winter.

Since 2000s, with the development of the South Pars gas field, Iran has started the development process of its industries and energy with gas. This field, which is known as the world’s largest gas field, was quickly developed by Iran and Qatar.

Fueling Power Plants

Thirty percent of the total annual gas production is consumed in 89 power plants across the country. Currently, nearly 3 billion liters of liquid fuel is stored in power plants and industries’ storage tanks, which is 450 million liters higher than last year. The 13th administration has managed to prevent power outages and has provided sustainable fuel in the country with scientific policymaking.

The country’s power plants need about 235 to 240 mcm/d of equivalent fuel to provide electricity in winter, and the Petroleum Ministry must supply the required fuel from natural gas, gas oil (diesel) and fuel oil. In this way, about 100 mcm/d has been promised by natural gas and the rest must be supplied from liquid fuel. Of course, the amount of gas sent to power plants during cold days is lower than the promised amount. In total, this 240 mcm of fuel is equivalent to supplying electricity during peak time in winter, which is expected to be around 43,000 to 45,000 megawatts.

Official statistics show that this calendar year, the delivery of gas and liquid fuel to power plants has increased in hot and cold seasons, so that the share of gas in the fuel mix of power plants has increased 73% year-on-year. At the same time, the filling of power plant storage tanks has also reached a significant figure. Currently, in terms of diesel fuel, 75% of power plant tanks has been filled, and in terms of fuel oil, 60% of tanks has been filled. With the continuation of gas supply, gas consumption in Iran’s industries has grown by 10% annually.

4bcm Stored

In order to leave behind this winter and to ensure the stability and resilience of gas transmission, Iran has managed to successfully store 4 bcm in the Sarajeh and Shourijehunderground storage sites. Also, good storage has been done in the gas oil and fuel oil sector, so that if we have to impose restrictions on industries, we will not have any problems with supplying the second fuel.

The development of underground natural gas storage in the country has received more attention in the 13thadministration, and Reza Noshadi, CEO of Iran Gas Engineering and Development Company (IGEDC), emphasizing the impact of underground gas storage development on the advancement of energy diplomacy, has announced that seven fields were decided to be developed while 14 natural gas storage development projects would go on simultaneously.

Iranian Gas Transmission Company (IGTC) is ranked the first in Asia and the Middle East and the fourth in the world, only behind the US, Russia and Canada, in terms of the capacity of pipelines and operating facilities (more than 38,000 kilometers of pipelines and 88 gas compressor stations with 326 compressor units, 9 gas export and import terminals and 800 telecommunication stations, 8,000 kilometers of optical fiber network, 4,000 kilometers of microwave network). It has capacity to transfer more than 280 bcm of gas per year.

Courtesy of Iran Petroleum

Negar Sadeghi