A Treasure Called Natural Gas

Ahmad Rahgozar is the vice president of NIOC and CEO of NIOC International. His previous working experience allows him to present authentic comments on the Iranian petrochemical sector, and its global targets. What follows is his IPF account on Iran’s natural gas potentials.

Age of Natural Gas: The twenty-first century is the “natural gas” era, as coal was the fuel of the 19th century and crude oil of the 20th. States seeking increasing revenues and sustainable economic development should balance their energy requirements, national security and environmental considerations in the global economy. To this end, natural gas plays a key role for attaining this equilibrium as a clean, efficient and cheap fuel.
Housing 18% of total world gas reserves, Iran will play a key role in supplying gas to the world, especially to Europe and Asia.

A Growing Asset: We are presently producing some 280 million cubic meters per day of rich and lean gas equivalent to 95 billion cubic meters per year. Our aim is to produce 550 million cubic meters per day or 190 billion cubic meters per annum by the end of our current development plan, meaning our gas output would double by 2005. Natural gas is to account for some 55% of Iran’s energy mix by the year 2005.

The Gem of Assaluyeh: Around 10% of the world gas is around Assaluyeh region. There are eight different natural gas deposits in a radius of 150 kilometers around the port. NIOC would invest around $10 billion during the country’s Third Five-Year Development Plan in this port.
The concentration of such significant volume of natural gas reserves, associated hydrocarbons, and petrochemicals feedstock around Assaluyeh promote good potentials for investment, trade and development of energy and petrochemicals firms.

Policies and Priorities: NIOC plans to hike gas output in order to replace the use of petroleum products, produce petrochemical products with high value added, clean the environment, and contribute to sustainable development and thus saturate the internal needs for natural gas within the next five years. Among our foremost priorities in the natural gas sector is the export of gas to appropriate markets. The country has pursued this along options of piped gas, LNG and gas to liquids.

Competitiveness: Natural gas is now being used as feedstock in petrochemical industries. Two factors would make natural gas-based petrochemicals attractive in the Middle East. The Middle East prices hover around 60 to 80 cents per million Btu whereas American and European prices are around $5 to $6. The Middle East’s role as a short-haul supplier to Asia is also another advantage.

Horizon: The Middle East’s and Iran’s gas may have the maximum impact in raising the role of gas in the world energy mix and also in petrochemicals via attractive pricing. Iran pursues petrochemicals development through these advantages. Its competitive pricing for gas facilitates gas exports and its use in petrochemicals. NIOC welcomes all the interested parties, in the region and outside, to contribute in any way to this process.