Iran has discovered a large gas reserve in its southern province of Fars near the Persian Gulf as the country moves ahead with plans to expand its massive petroleum sector despite foreign sanctions.
Iran’s Oil Minister Mohsen Paknejad said on Monday that the Pazan gas reserve holds an estimated 10 trillion cubic feet, or more than 280 billion cubic meters (bcm), of natural gas.
Paknejad said the large gas field also covers areas in the neighboring province of Bushehr, which is the hub of Iran’s gas processing industry.
He said Iran had awarded a contract to develop the field, adding that production could start within the next 40 months.
The minister said exploration activities in Pazan had also led to the discovery of a reserve with at least 200 million barrels of crude oil, adding that the figure could increase as a result of ongoing operations in the field.
His comments came in a report by the Iranian Oil Ministry’s news service Shana, which indicated that the discovery of the Pazan gas field had taken place after drilling a second well in the field in recent years.
It said production from the field will boost Iran’s capacity to respond to an increasing demand for energy in the country in the coming years.
Iran is the second-largest holder of natural gas resources in the world. It is also the third-largest producer of natural gas after the United States and Russia, and the fourth-largest consumer after the US, Russia, and China.
Facing an increasing demand for natural gas in power plants and industries, the country has successfully increased its production in recent years by relying on domestic companies that have replaced foreign contractors wary of US sanctions.
The South Pars gas field, located on the maritime border between Iran and Qatar in the Persian Gulf, is responsible for more than 70% of Iran’s natural gas production of nearly 1 bcm per day.
