Iran to Increase Natural Gas Output in Coming Years

(FNA)- The US Energy Information Administration (EIA) and the Facts Global Energy (FGE) in their annual reports about Iran's energy sector predicted that Iran's natural gas production will be increased in the coming years.

The FGE projected that Iran's gross natural gas production will increase to 10.6 trillion cubic feet in 2020, but that growth will depend on the pace of development of the South Pars gas field, the Trend reported.

Iran's gross natural gas production totaled almost 8.2 trillion cubic feet in 2012, increasing 3% from the previous year. Of the 8.2 trillion cubic feet produced, most of it was marketed (6.54 trillion cubic feet), and the remainder was re-injected into oil wells to enhance oil recovery.

Reinjection of natural gas plays a critical role in oil recovery at Iran's fields. As a result, natural gas reinjection is expected to increase in the coming years.

Some estimates indicate that the National Iranian Oil Company (NIOC) will require 7 to 8 billion cubic feet per day of natural gas for reinjection into its oil fields in the next decade, according to FGE.

Iran is the second-largest proved natural gas reserve holder in the world.

According to Oil & Gas Journal, as of January 2014, Iran's estimated proved natural gas reserves were 1,193 trillion cubic feet, second only to Russia.

Iran holds 17% of the world's proved natural gas reserves and more than one-third of OPEC's reserves. Iran has a high success rate of natural gas exploration, in terms of wildcat drilling, which is estimated at 79% compared to the world average success rate of 30% to 35%, according to FGE.

Iran's largest gas field is South Pars located offshore in the middle of the Persian Gulf. South Pars is a portion of a larger gas structure that straddles the territorial water borders of Iran and Qatar. It is called the North field in Qatar. South Pars reserves account for roughly 40% of Iran's total gas reserves, and the field is also estimated to hold 17 million barrels of condensate in place. Other major gas fields in Iran include: Kish, North Pars, Tabnak, Forouz, and Kangan.