Iran announces gas discovery after war worsens energy squeeze

IRAN said it discovered more than 7.5 trillion cubic feet (tcf) of natural gas, after months of war with the US and Israel seriously disrupted its energy sector.

Around 5.7 tcf of the find in the country’s southern Fars province is recoverable, Iran’s Oil Minister Mohsen Paknejad told state TV on Sunday (Aug 23).

He described it as equivalent to 15 years of production from one phase of the world’s biggest gas field, South Pars, which Iran shares with Qatar. 

The discovery also includes gas condensates worth “tens of billions of dollars”, Paknejad said, adding that the Islamic Republic plans to develop the resources “as soon as possible”.

Any production would likely be years away. Even before the war began, Iran’s energy industry was hobbled by Western sanctions, under-investment and power cuts.

Iran lost about a quarter of its daily gas production capacity due to attacks that began in late February and featured airstrikes on energy infrastructure, including at South Pars. 

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While some capacity has since been brought back online, the government has warned of shortages this winter and called on citizens to limit consumption. BLOOMBERG