Speaking at a government press conference on Tuesday, Touraj Dehqani highlighted that this industrial complex is one of the most significant achievements of the Islamic Revolution and plays a crucial role in meeting the country’s energy needs.

He noted that over the past two decades, approximately $90 billion has been invested in the upstream sector of South Pars, and the region’s daily gas production capacity has now reached over 700 million cubic meters.

The sector also generates $100 billion in annual revenue, underscoring its strategic importance to the national economy.

Dehqani pointed out the region’s substantial contribution to the country’s energy supply, stating that 70% of the nation’s gas, 40% of the feedstock for gasoline production, 50% of petrochemical feedstock, and 50% of the gas delivered to power plants come from South Pars. These figures highlight the region’s vital role in ensuring the country’s energy security.

The CEO also mentioned the increase in gas production capacity under the 14th government, noting that through the round-the-clock efforts of their team, an additional 7 million cubic meters of daily gas production capacity was added.

This year, a record daily production of 716 million cubic meters was achieved, marking a 10 million cubic meter increase compared to the previous year.

Gas production expansion

Dehqani addressed the challenges in energy supply and stressed the need for further development, stating that under the seventh development plan, the country requires an additional 250 million cubic meters of daily gas production capacity over the next five years.

The majority of this responsibility will be shouldered by Pars Oil and Gas Company.

He added that a detailed and expert plan has been developed to increase the country’s gas production capacity.

Relying on the expertise of domestic specialists, he expressed confidence that at least 150 million cubic meters of new gas production capacity will be achieved within the next four to five years.

The CEO also mentioned the development of other gas fields, including Kish, North Pars, and Balal, and stated that the planned increase in gas production capacity under the seventh development plan is achievable, with a 100% increase of 150 million cubic meters being feasible.

Need for pressure enhancement

Dehqani noted that the South Pars gas field, which supplies 70% of the country’s gas, has entered the second half of its lifespan and is experiencing natural pressure decline. This could impact production, necessitating preventive and technical measures to maintain production capacity.

He also highlighted the competition between Iran and Qatar in exploiting this shared field, emphasizing that despite two-thirds of the field being under the control of the neighboring country and foreign companies operating freely there, Iran has managed to increase its extraction to 50 million cubic meters per day more than Qatar, despite limitations.

$17b investment to prevent production decline

Dehqani identified the implementation of a large-scale pressure enhancement project as a key solution to maintaining gas production.

The project, which involves the creation of seven pressure enhancement hubs, will require a $17 billion investment. He stated that this initiative will not only prevent a decline in production but also bring significant economic value.

In conclusion, Dehqani praised the efforts of domestic specialists and stressed the importance of accelerating this strategic project. He noted that with the support of the Ministry of Oil and the efforts of local experts, preparations for the pressure enhancement project are underway, and the contract will soon be signed.