Iran Discovers 7.5 Trillion Cubic Feet of Natural Gas

Iran's Natural Gas Discovery

Iran announced a major natural gas find in the southern province of Fars. The discovery is estimated at over 7.5 trillion cubic feet, with about 5.7 trillion cubic feet considered recoverable. Oil Minister Mohsen Paknejad stated that this volume is equal to 15 years of production from one phase of the South Pars gas field, which Iran shares with Qatar. He mentioned that the gas is 'sweet', which could reduce development and operating costs. This discovery comes as Iran's energy sector faces ongoing disruptions due to conflict with the U.S. and Israel, impacting production capabilities.

The Iranian oil ministry reported that repairs at the South Pars gas field are ongoing. Currently, 70% of operations have been restored. However, complete restoration is expected to take at least three years, according to the chief executive of the company managing the field. He added that efforts are underway to bring some production back online by the end of the year. Plans for full reconstruction are set for within two years. The government has warned of possible gas shortages this winter and urged citizens to conserve energy.

This announcement follows threats from U.S. officials about new sanctions against Iran. President Trump called the potential sanctions 'draconian', stating that the U.S. has significant measures it could impose. Treasury Secretary Scott Bessent warned of an 'economic D-Day' for Iran, suggesting a major financial offensive could be coming. The impact of these sanctions could further strain Iran's already struggling energy sector, which has faced previous sanctions and under-investment.

Based on reporting by: oilprice.com, businesstimes.com.sg