Iran discovers over 200 billion cubic metres of natural gas in Fars

Iran has announced the discovery of more than 200 billion cubic metres of natural gas in the southern Fars province, offering a potential boost to its energy sector after months of damage to key infrastructure.

Iranian Petroleum Minister Mohsen Paknejad said on Sunday that the newly discovered field contains more than 200 billion cubic metres of natural gas, of which more than 160 billion cubic metres could be extracted.

The minister described the gas as “sweet” natural gas, meaning it contains very little hydrogen sulphide, a toxic gas. The lower hydrogen sulphide content could help reduce operating and development costs at the field, according to Paknejad.

The discovery comes as Iran's energy sector faces pressure following months of conflict and attacks on parts of its energy infrastructure, including gas production facilities and oil depots.

The newly identified reserves could therefore provide Iran with an additional source of natural gas. However, the benefits are unlikely to be immediate.

According to Bloomberg, any new production from the field would probably still be years away. That means the discovery does not offer an instant solution to Iran's current energy challenges.

The biggest advantage highlighted by Iran is the quality of the gas. Because the field is believed to contain very little hydrogen sulphide, developing and operating the site could be less costly than producing gas with higher levels of the toxic compound.

More than 160 billion cubic metres of the reported reserves are considered extractable, giving Iran a substantial potential source of additional gas supply once the field is developed.

For global energy markets, a large new gas discovery can also matter because additional production could eventually increase the amount of natural gas available from a major energy-producing country.

With agency inputs