Iran has discovered more than 7.5 trillion cubic feet (212.4 billion cubic metres) of natural gas in a field in the southern part of Fars province, Oil Minister Mohsen Paknejad said on Sunday, reported Reuters citing Iranian state media.
Paknejad said the field could yield about 5.7 trillion cubic feet (around 161 billion cubic metres) of gas after taking the estimated recovery rate into account. He also said the newly discovered gas is “sweet”. This type of gas can reduce development and operating costs, according to his comments reported by Reuters.
The discovery comes as Iran faces major pressure on its energy system after months of conflict with Israel and the United States. Tehran has been repairing energy infrastructure damaged during the war. It also faces planned new US sanctions that could add pressure to its economy.
Before the war, Iran estimated its natural gas production at about 650 million cubic metres per day. That equals roughly 8.4 trillion cubic feet a year, reported Reuters.
How much gas can Iran actually recover?
The more than 7.5 trillion cubic feet figure represents the gas found in the field. Iran does not expect to extract all of it.
Paknejad said the estimated recovery ratio means Iran could produce about 5.7 trillion cubic feet from the discovery, reported Reuters citing local media. The minister added that the field contains gas condensate, although the figures provided in the Reuters report did not give a specific estimate for those reserves.
In July, a senior Iranian government official said attacks had reduced the country’s gas production capacity by about 230 million cubic metres per day since the war began in late February, reported Reuters. Mohammad Jafar Ghaempanah, executive deputy to the president, said on July 20 that Iran expected to restore about 100 million cubic metres per day of lost capacity within the coming months.
Ghaempanah said the lost production had worsened Iran’s existing gas supply imbalance. At the time, Iran’s total production stood at around 650 million cubic metres per day, according to the Reuters report published on July 20.
The production losses have also affected Iran’s domestic energy supply.The country faced additional pressure during the summer because higher electricity demand for cooling added to shortages and rolling power outages, reported Reuters.
Why does the discovery matter during the conflict?
Natural gas plays a central role in Iran’s domestic energy system. In March, South Pars, Iran’s largest gas field, supplied most of the country’s gas. Iran used about 276 billion cubic metres of gas in 2024, according to the Gas Exporting Countries Forum data cited by Reuters.
South Pars is also the world’s largest offshore natural gas field. Iran shares the field with Qatar, where it is known as the North Field. The field contains an estimated 1,800 trillion cubic feet of usable gas, reported Reuters.
Iran uses most of its gas at home. More than 90% of its gas production was consumed domestically, Reuters reported in March. Gas supplies households with fuel for cooking and heating. It also supports industries and power generation. About 85% of Iran’s electricity comes from gas-fired power plants, according to Energy Institute data cited by Reuters.
The March Reuters report also said Iran’s domestic production was not enough to meet peak summer demand. The shortfall had contributed to blackouts.
The latest discovery does not mean Iran can immediately add 5.7 trillion cubic feet of gas to its production. The figure represents estimated recoverable resources. Iran would still need to develop the field and connect it to its energy system.
The “sweet” quality of the gas could help with that process. Paknejad said the characteristic would reduce development and operating costs, according to Reuters report.
The discovery also comes after attacks on Iran’s energy infrastructure. In March, Israeli strikes hit Iran’s South Pars gas field and the nearby Asaluyeh processing hub. The attacks caused a major escalation in the conflict and disrupted Iran’s energy system.
The Associated Press also described South Pars as an “energy lifeline” for Iran because it supports domestic energy needs and provides gas for industries that generate export earnings.
Iran has also faced limits on its ability to turn its huge gas reserves into export revenue. Sanctions and a lack of investment have blocked the development of major liquefied natural gas export projects, reported AP. Iran therefore relies mainly on pipelines for its gas exports.
Iran exported about 15 billion cubic metres of gas in March 2024, mainly to Turkey and Iraq, reported AP.