Iran Discovers 7.5 Trillion Cubic Feet of Natural Gas

Iran has confirmed the discovery of 7.5 trillion cubic feet of natural gas in the southern province of Fars. The recoverable amount is estimated to be around 5.7 trillion cubic feet. Iran's Minister of Petroleum, Javad Owji, stated that this discovery corresponds to the production of one phase of the South Pars gas field for 15 years. Iran is currently restoring its energy facilities while facing ongoing pressure from U.S. sanctions. Before the war, Iran's natural gas production was about 650 million cubic meters per day, and this new discovery is significant compared to annual production. However, the total reserves and the actual recoverable amount differ, with the recoverable amount referring to the portion that can be produced technically and economically. Owji described the newly confirmed gas as sweet gas, which also includes gas condensate. However, confirming reserves does not necessarily mean an increase in supply, as actual production requires addressing sanctions, securing capital, and obtaining drilling equipment. A senior Iranian official expects to restore natural gas production capacity of about 100 million cubic meters within a few months. Iran's proven natural gas reserves stand at 1,200 trillion cubic feet, making it the second largest in the world. The market views this announcement as a long-term supply variable, and delays in sanctions and facility restoration could postpone the supply effect.

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