With the world’s second-largest natural gas reserves and unique geopolitical advantages, Iran has the potential to become a major hub for natural gas production and exports. However, achieving this requires optimizing energy consumption and taking significant steps in production.

One key challenge in Iran’s oil and gas industry is the slow development of gas refineries, despite recent efforts. Expanding new refineries must be a priority in the country’s energy policy—especially in central Iran, home to major fields like Kangan and Tabnak, where additional refining capacity is urgently needed.

Investing in gas refineries not only boosts economic value but also strengthens energy security. So, what are the main advantages?

 Reducing waste, supporting downstream industries 

Due to insufficient refining capacity, some of Iran’s produced gas is flared, while much of it is used with minimal added value. By developing new refineries, Iran—rich in both sour and sweet gas fields—can prevent waste and supply processed gas to domestic and international markets.

Processed natural gas is essential for petrochemical plants, power plants, and industrial units. Currently, gas shortages hinder industrial growth, making refinery investments crucial for sectors like petrochemicals and steel.

 Cutting pollution, creating jobs 

Unrefined gas with impurities (such as sour gas) contributes to air pollution and environmental damage. Gas refineries remove harmful compounds like sulfur and carbon dioxide, reducing emissions while producing higher-quality gas for industrial use.

Building gas refineries requires skilled labor and advanced technology, creating thousands of direct and indirect jobs while fostering domestic technical and engineering expertise.

 Boosting exports, foreign revenue 

With rising global demand for natural gas, Iran can expand exports of refined products like liquefied petroleum gas (LPG), gas condensates, and sweetened gas. This would increase foreign revenue and strengthen Iran’s position in the global energy market.

Gas refinery development is a strategic necessity for optimizing Iran’s gas resources. Investments in this sector reduce waste and pollution while driving industrial growth, job creation, and gas exports.

At the "Transformation in Investment and Development in Iran’s Oil and Gas Upstream" event, Iran Central Oil Regions Company has outlined this 20-million-cubic-meter-per-day gas refinery investment opportunity, with further details to be presented at the event.