Home / South Pars set to grow Iran’s market influence

South Pars set to grow Iran’s market influence

Iran will consume more gas and less oil once the South Pars field starts to operate at full capacity, according to the country's government.

Iran will consume more gas and less oil once the South Pars field starts to operate at full capacity, according to its government. Akbar Torkan, managing director of the Pars oil & gas company, said that energy consumers along northern shores of the Persian Gulf and near the ports of Bushehr and Bandar Abbas should adapt to facilitate the move to ‘cleaner’ fuel.

“Although at present, almost 60% of Iran’s energy demands are met by gas supplies, the daily consumption of crude is still as high as 1.5 million barrels per day,” he said.
“The government has considered extensive incentives to support industries in which gas has a high share of the product’s cost price. For example, the delivery price of gas to these industries will remain fixed for a period of ten years and will then increase in proportion with the inflation rate.”

South Pars gas field, jointly shared by Iran and Qatar, stands 80 km offshore to the south of Asaluyeh, a coastal city 270 km south east of Bushehr.

The higher gas consumption will naturally cut down the depletion of domestic oil reserves, giving Iran further sway to impact policies and decisions of the Organisation of Petroleum Exporting Countries (OPEC), said Torkan. Iran has maintained that increasing OPEC production will not have an effect on prices.

Torkan also said that phases I-V of South Pars are operating at full capacity, pumping a daily 125 million cubic metres of sweet gas into the nationwide grid, while phases VI-X are under construction. Torkan said 28 billion cubic feet of gas would be obtained from South Pars daily once all the 22 planned phases become operational.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.