Page 7 - MEOG Week 02 2023
P. 7
MEOG PRICES & PERFORMANCE MEOG
Iran hits gas record,
reiterates expansion target
IRAN IRAN achieved record gas production of 1.04bn doing more work, the amount of oil production
cubic metres (bcm) per day in late December may even exceed the limit of 4.5mn bpd […]
following work to rehabilitate NGL units in the each of the scenarios requires different financial
southwest of the country. resources, which should be seen according to the
Despite the record, Tehran has struggled to conditions.” This falls well below the 5.7mn bpd
satisfy demand and earlier in the month resorted espoused by the Ministry of Petroleum (MoP)
to reducing supplies to industrial and state con- and the National Iranian Oil Co. (NIOC) last
sumers after pleas for residential and commer- year.
cial users to reduce consumption failed to yield a To achieve these targets, a combined $160bn
sufficient reduction. of domestic and foreign direct investment is said
As the winter crunch continues, the country’s to be required with the Islamic Republic News
Deputy Petroleum Minister for Planning Hos- Agency (IRNA) reporting August that $50bn
hang Fallahtian this week reiterated the govern- had already been secured, including a $40bn
ment’s $80bn plan to increase gas production memorandum of understanding (MoU) with
capacity to 1.5bcm per day by 2030. Russian gas monopoly Gazprom, which covers
In a televised interview with the state-backed the development of the Kish and North Pars gas
Young Journalists Club, he said that despite the fields, pressure enhancement at the supergiant
high volume of production, “we are not good South Pars offshore gas field and the develop-
consumers, energy consumption in our country ment of six undisclosed oilfields.
is twice the world average, so we have to consider NIOC also received a $7bn commitment
optimisation of energy consumption”. from local companies, banks and the National
“Currently, we produce 850mcm of gas daily Development Fund of Iran (NDFI) to fund the
in the country, of which 650mcm are consumed expansion of oil production at Azadegan, Iran’s
in the household, commercial and adminis- largest oilfield, to 570,000 bpd from the current
trative sectors. A two-degree reduction in the combined 215,000 bpd across the north and
temperature of houses in the whole country is south development projects.
equivalent to the two-phase production gas in a Attracting foreign partners into the Iranian
refinery in Asalouyeh, southern Iran” – the key oil and gas sector has been the focus of the MoP
gas hub associated with the supergiant South for the best part of decade though and at present,
Pars gas field –, he added. ZN Vostok is currently the only Russian com-
Fallahtian noted that both domestic and pany participating in the sector. It was formed
foreign capital would be required, adding that as an affiliate of Zarubezhneft in 2017 and is
the government has “transferred many parts of involved in the development of Cheshmeh
investments to major economic holdings and we Khosh and previously had agreements in place
hope to [experience] an increase in gas produc- for West Paydar and Aban.
tion in the next five years”. Shortly after the US withdrew from the Joint
The official appeared less optimistic about Comprehensive Plan of Action (JCPOA) in
efforts to increase oil production, noting that 2018, control of ZN Vostok was passed to Prom-
the current 3.8mn barrel-per-day (bpd) level sirieimport, a trading unit of Russia’s Ministry
could rise to “over 4.2mn bpd” and that “by of Energy.
Week 02 11•January•2023 www. NEWSBASE .com P7
