Despite receiving less attention due to the broader energy imbalance crisis, these efforts ensured a winter without gas shortages despite extreme cold and unprecedented consumption spikes. 

The cold days of 1403, while posing energy supply challenges, highlighted the vital role of natural gas and the oil industry in securing the country’s energy needs. With the 14th administration taking office amid critical timing and fuel storage shortages for power plants in the first five months of the year, stable gas production and supply became even more crucial. 

As the world’s third-largest gas producer, Iran relies on natural gas for over 70% of its energy mix.
However, excessive dependence on gas, coupled with unmet energy optimization targets across government agencies, has led to consumption outpacing production—even as Iran’s gas production growth doubles the global average. 

While energy experts agree that addressing the imbalance requires demand-side solutions and consumption optimization, the Oil Ministry implemented strategic gas projects to prevent an energy crisis this winter, setting new production records. Without these measures, the country would have faced far greater supply challenges. 

Key measures, achievements

The Oil Ministry’s initiatives to increase production capacity and optimize gas delivery before winter added roughly 30 million cubic meters per day (mcm/d) to raw gas output—equivalent to the consumption of two provinces. This figure later rose to 35 mcm/d during peak winter demand. 

Hamid Bovard, CEO of the National Iranian Oil Company (NIOC), stated at the third PetroTech Conference (Feb. 25) that gas production records were broken multiple times this winter, peaking at 1.115 billion cubic meters per day (bcm/d). Days later, NIOC announced a new record: 1.021 bcm/d of gas delivered to the National Iranian Gas Company. 

South Pars: Heart of Iran’s gas production

This winter, daily gas extraction from South Pars, Iran’s largest gas field, hit a historic 716 mcm/d—supplying over 70% of domestic gas demand, 40% of gasoline feedstock, and nearly 50% of petrochemical and power plant needs. The field’s output comes from 37 offshore platforms, 300+ wells, and 24 phases. 

To sustain production amid rising domestic demand and declining reservoir pressure, the South Pars Pressure Boost Project (valued at $17 billion) was signed on March 9, 2025, with four domestic contractors. The project aims to: 

- Compensate for pressure drop 

- Maintain peak gas production 

- Reduce gas and gasoline imbalances 

- Prevent gas migration to Qatar 

Central Iran Oil Fields: A new gas production record

Iran’s Central Oil Fields Company also set a new record, producing 248 mcm/d (25% of national output). Key projects included: 

- Launching the Varavi Pressure Boosting Station (+2 mcm/d) 

- Developing the Dey Field (+3 mcm/d) 

- Bringing new wells online (e.g., Dalan-19, Abandan-18, Khangiran-85, each adding 1.5 mcm/d) 

Notably, winter production ramp-up began in October 2024—two months earlier than usual—to ensure stable supply. 

Southern oil-rich regions: Cutting flaring, boosting supply

The National Iranian South Oil Company (NISOC), responsible for 80% of Iran’s crude output, significantly reduced gas flaring by 250 million cubic feet per day (mcf/d) compared to early autumn 2024. Gas deliveries to the national grid exceeded targets by 32%. 

Future plans

NIOC plans to further increase output through: 

- Maximizing production at Pars Oil and Gas Company beyond approved levels 

- Activating new wells (e.g., Platform 11B’s Well 7 (+3 mcm/d), Platform 13A’s Well 4 (+2 mcm/d injection capacity)) 

- Offshore drilling at the Belal field (near Qatar’s border) 

- Completing the first phase of North Pars Gas Field development 

- Installing the Balal gas field jacket (built domestically for $16 million) 

By next year, 14–15 mcm/d of associated petroleum gas (APG) will be captured daily from new projects. 

Through strategic measures, NIOC has significantly boosted gas production and delivery, ensuring supply during one of the toughest winters. Record-breaking output, new well activations, and optimized maintenance stand as key achievements since the 14th administration took office.