Natural gas industry in Iran

AT the end of March 2007, the remaining quantity of recoverable gas reserves in the country has been in excess of 28.3 trillion cubic meters that is the second gas rich country in the word. While the geological studies in certain geographical regions of the country have not been thoroughly conducted yet. it is likely to explore further reserves of gas in the future. Therefore a thorough and explicit planning knowledge is essential for utilization of this energy carrier. Iran is one of the largest gas rich countries in the world that production potentials exceed gas injection and domestic consumption requirements. Gas can be utilized as feedstock for petrochemical and refining products or exported through pipelines or as LNG. By injecting gas into oil reservoirs while increasing the oil recovery ratio of oil fields, gas storage from production of shared reservoirs into non - shared reservoirs is as well accomplished. Gas consumption in domestic markets and its substitution with oil products in addition to environmental benefits, will also result into the optimum consumption of these products and relieve the government from the heavy burden of existing subsidies and the heavy expenditures of importing these products into the country. To supply gas requirements, proper operation and appropriate production of shared reservoirs such as south pars with the objective of securing gas requirements and providing balance of supply and demand as well as utilization of maximum share in these reservoirs are other essentials towards development of this vital industry. Several energy experts and Iran's economy analysts believe that further expansion and utilization of natural gas is an essential element for sustainable development and this energy carrier is considered the superior fuel of the 21 century. According to reliable estimations, natural gas in regard to its intrinsic characteristics and especially environmental suitability is one of the energy carriers that will attain the highest growth rate among other energy carriers with in the next two decades which itself is indicative for consumption growth of this substance in the global basket of energy consumption. The need of the world's countries for energy sources along the enormous natural gas reserves in the country opens broad economical, political dialogue scene towards us and contributes an outstanding strategic significance to our gas resources. Iran, regard to her geographical and political strategic situation. Can play a leading role in global gas supply and act as a bridge between the enormous Middle Eastern gas reserves with major gas consumption and demand centers in Europe and Asia Planning and policy making regarding the development of gas industry, it is essential to manage all aspects of gas from exploration and production to consumption, injection and exports and etc. is essential to be administered by the national Iranian gas company so that prepared plans could be implemented without being subject to such problems as lack of coordination, parallel activities and organizational difficulties. The Islamic republic of Iran having access to enormous quantities of gas reserves, towards attaining the appropriate disposition in regard to her volume of reserves should as well furnish the provision of absorbing the world's up to date technological capital , to compensate her remoteness from worlds gas markets. The 21 century is the century of gas and our country potentially and in an exceptional manner, by adopting an organized strategy ,could portray the most natural and influential role for the people and the country's economy as well as in the region and the world. The increasing global needs for hydrocarbon energies and related industries / encompasses one of the golden opportunities for our country. In conclusion it is worth mentioning that within that the next 10 years Iran requires capital investment in excess of $50 billion in her gas industry to become capable of accomplishing objectives such as supply of domestic demands/provide the necessary gas for injection to oil wells / increase gas reservoirs/added value through transaction with industries and to realize proper disposition in regional and global gas market.