Tehran is prioritising gas, but a near-term increase in overseas sales is unlikely
Iran unlikely to prove a gas saviour
Any hopes that the Mideast Gulf state could increase production and exports to help ease the global shortfall are misplaced
Iranian oil minister Javad Owji announced in late June that the final phase of the two-decade-long development of the giant South Pars offshore gas field would enter production in three months’ time. Buoyed by rocketing prices received for its illicit oil exports, Tehran is doubling down on upstream investment and prioritising gas. But any hopes of fresh material Iranian supply hitting the global gas market will likely be disappointed. Profligate domestic consumption, coupled with technical and financial constraints on output and export growth, render a substantial near-term increase in overseas sales improbable. Iran is the world’s third-largest producer of gas—some 70pc of which comes from
Also in this section
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
21 January 2025
The new president must put his cards on the table and tell the American people, and the world, if the US is formally abandoning the energy transition
