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Weapons of Mass Destruction (WMD)

Iran Press TV

Iran to invest $20bn for development of new gas fields: Petroleum official

Iran Press TV

Tuesday, 26 January 2021 5:28 PM

An Iranian Oil Ministry official says the government aims to spend some $20 billion in new investment for development of gas fields to meet a growing demand for energy in the country.

Mohammad Meshkinfam, who heads the Pars Oil and Gas Company (POGC), said on Tuesday that the South Pars Gas field, Iran's largest gas reserve located in the Persian Gulf, faces pressure drop because of growing consumption of gas in the country.

"That should be offset with development of new gas fields and in future years some $20 billion should be spent for the development of those fields," said Meshkinfam in a meeting focused on the future of natural gas production and consumption held on the sidelines of Iran Oil Show 2021.

Iran's gas production topped a whopping figure of one billion cubic meters (bcm) per day last week when the country inaugurated a sprawling facility in its energy-rich southwest to collect and refine gas associated with crude production.

Demand for natural gas has also increased significantly in recent years, both in the household sector and in the power plants as Iran seeks to burn more gas for electricity generation to save precious fuels for export.

Meshkinfam said more than a third of Iran's current gas output comes from the South Pars where development projects have progressed over the past years despite sanctions imposed by the United States.

Another Oil Ministry official said during the same panel discussion on Tuesday that Iran should reach a daily production of 1.6 bcm to respond to an increasing demand for energy in the country in the upcoming years.

Abdolmohammad Delparish, a senior advisor to the National Iranian Oil Company (NIOC), said that Iran could launch development plans for a total of 20 gas fields it has explored in recent years.

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