Head of the Union of Scientific Energy Associations of Iran: We Will Soon Lose One Phase of South Pars Annually

The head of the Union of Scientific Energy Associations of Iran has issued a warning, stating that "if necessary investments are not made, starting from 2025, we will lose one phase of South Pars each year." Hashim Arrouyi referred to the supply of 70% of the country's gas from "South Pars" and deemed this situation to have serious and dangerous consequences for Iran's economy, adding that in such circumstances, "officials are comforted by Russia and China." The ISNA news agency also published a report on Sunday, April 23, examining the state of the gas industry, noting that the "annual gas production" remains stable with a likely "slight" increase, while the future deficit in its "balance" is considered "inevitable." Experts attribute the current conditions in the oil, gas, and petrochemical industries to the lack of sufficient investment and attention from governments to this sector. The Islamic Republic's focus on the East has also failed to create the necessary investment environment in this area, as at critical moments, Russia and China shifted their investment paths from Iran to neighboring countries. In this context, on November 21, a newspaper in Iran reported that the Russians had turned their backs on a $120 billion agreement with Iran and attracted Iranian oil industry specialists with tenfold salaries in Iraq, stating that the Russians left Iran for Iraq due to Iraq's "tempting" offer. The Ham-Mihan newspaper, in an interview with the Secretary-General of the Association of Exploration and Production Companies, discussed the difficulties of developing the oil industry, stating that Iran's oil contracts were structured in such a way that they "drove the Russians away from Iran," and "today we see that the Russians are investing in Iraq." In July 2022, officials from the Islamic Republic's Ministry of Oil described signing a memorandum of understanding with the Russian side as one of the "great achievements," which was supposed to rely on these agreements for Russian investments in projects including the Kish gas field and North Pars. Last year, coinciding with the visit of Vladimir Putin, the President of Russia, and senior officials from that country to Iran, the National Iranian Oil Company and Gazprom signed an energy memorandum worth approximately $40 billion. The Minister of Oil of the Islamic Republic also stated on May 17 of this year that they are "developing 7 oil fields with capable Russian companies," and the Deputy Prime Minister of Russia has agreed to invest in the development of 6 new oil fields. The United States has sanctioned Iran's oil industry, and the oil sanctions are one of the Islamic Republic's problems. In this context, in September of this year, a spokesperson for the U.S. State Department told Voice of America that the Biden administration continues to implement "strict" sanctions against the Islamic Republic, including those related to oil and petrochemical trade. The warning from the Secretary-General of the "Oil Industry Federation" regarding gas imbalance; we will soon become a gas importer. Workers at South Pars protested the failure to implement government officials' promises and the flaws in the job classification plan. Workers in third-party and support roles at the South Pars gas refinery gathered. Qatar is making significant strides to develop extraction from the world's largest gas field; Iran remains entangled in imbalance. Results of a study: Why has Iran fallen into a severe electricity and gas crisis? Qatar and China signed a 27-year agreement for the delivery of liquefied natural gas to China. The "imbalance" between gas production and consumption is pushing Iran towards gas imports.