The International Energy Agency states that Iran's gas production growth was less than 2 percent in 2024 and is likely to be only 1 percent this year. This is in contrast to Iran's average annual gas production growth of over 5 percent in the past decade. Due to the lack of diversity in Iran's energy mix, gas accounts for 70 percent and oil products for nearly 30 percent of Iran's energy consumption, while the total share of clean energy sources such as solar, wind, hydro, and nuclear is less than 1 percent. The Islamic Republic's inability to develop new gas fields, alongside a domestic gas demand growth of over 5 percent, has led to a significant gas shortage in Iran during winters in recent years, and by the year 1403 (2024), the gas deficit has extended to all seasons. The International Energy Agency's latest report, published on its website, mentions Iran's gas shortage even in the autumn season, stating that the Islamic Republic has been forced to halt operations at some power plants due to fuel shortages. The report indicates that the expected 1 percent growth in Iran's gas production is contingent upon the implementation of a gas flaring reduction program and increased production from phase 11 of the South Pars gas field. Iran, due to the lack of gas collection equipment at oil fields, flares over 20 billion cubic meters of gas produced from oil wells annually, wasting it in the flaring process. This flaring phenomenon accounts for 40 percent of Turkey's total gas consumption, with an annual value of about 8 billion dollars wasted. Previously, Islamic Republic officials stated that only 5 billion dollars of investment is needed to stop flaring. Iran has the second-highest volume of gas flaring in the world after Russia, contributing to about 5 percent of Iran's total greenhouse gas emissions. In comparison, while Saudi Arabia produces three times more oil than Iran, it has only one-tenth of Iran's flaring due to the installation of gas collection equipment at oil fields. The International Energy Agency notes that last year Israel had the highest gas production growth in the Middle East, with an 11 percent increase to 27 billion cubic meters, but this year, due to the 15-month war with the extremist groups Hamas and Hezbollah and the halt of gas field development projects, gas production growth will be lower.
International Energy Agency: Iran's Gas Production Growth Has Slowed
The International Energy Agency reports that Iran's gas production growth has significantly slowed, with projections of only 1 percent growth this year compared to over 5 percent in previous years. This decline is attributed to a lack of new gas field development and a high domestic demand, leading to year-round gas shortages. The situation highlights Iran's reliance on gas and the urgent need for investment to address flaring issues.
👥 Key Players
📰 What Happened
Iran's gas production growth has slowed significantly, with only a 1 percent increase expected this year, compared to over 5 percent in previous years. This slowdown is due to a lack of new gas field development and increasing domestic demand.
- Iran's gas production growth is projected at only 1 percent this year.
- Gas shortages have led to power plant shutdowns and are exacerbated by high levels of gas flaring.
💡 Why It Matters
📚 Background
Iran has the world's second-largest natural gas reserves but faces challenges in maximizing production due to sanctions and infrastructure issues.
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