Iran Ready to Supply Europe's Energy
Gas Field Output Increases
Iran Ready to Supply Europe's Energy
During a recent international conference on oil, gas and electricity held in Greece, Iranian Minister for Oil Mr Zanganeh declared that Iran is ready to provide the energy needed in European states. He added that given its wealth of natural resources, Iran could play an important role in energy supply worldwide: it has over 100 billion barrels of crude oil, 26.6 trillion cubic metres (cbm) of proven natural gas reserves and 17% of the total world gas reserves, as well as many unique geographical features.
Zanganeh referred to ongoing investment in the oil and gas industries, and stated that by 2005 Iran will have increased its daily gas production levels from 200 million cbm to over 500 million cbm. He said that Iran’s geographical location in the region means it is ideally positioned for the export of natural gas to global markets, and for monitoring the balance of supply and demand in the region.
He went on to note that only half of Iran’s gas reserves can be extracted on land; the other half is located in marine areas. This has created considerable flexibility towards investment in and expansion of the Iranian gas sector. The minister further stated that a wide range of activities aimed at boosting gas production will emerge in order to meet increasing domestic, regional and global demand in the upstream and downstream gas sectors.
In the gas fields in East Iran, output is set to increase to 45 million cbm per day. According to the Central Regions branch of the National Iranian Oil Company, extraction levels from the Khangiran gas reserves currently stand at 32 million cbm a day, which will rise to 45 million cbm a day when 10 new wells are tapped. The extracted gas will be conveyed to the collection units, and then to the gas refinery.
The Khangiran project will provide the people of the region with a safe reserve for household and commercial consumption, and will make gas shortages during cold winter days a thing of the past.
For further information on this topic please contact Behrooz Akhlaghi at International Law Office Dr Behrooz Akhlaghi and Associates by telephone (+98 21 873 21 38) or by fax (+98 21 873 41 29) or by email ([email protected]).