Natural gas exports experienced a 60% hike during the fiscal 2017-18 compared with the corresponding period of the previous year, the National Iranian Gas Company's director for international affairs said on Sunday.
"NIGC transferred 13.8 billion cubic meters of gas to target destinations last year and plans are underway to raise the level in the coming years," Behzad Babazadeh was also quoted as saying by Shana, the National Iranian Oil Company's news agency.
According to the official, the country is expected to account for 10% of the global gas export share by 2025, for which not only have new contracts been concluded, but also talks are underway with potential customers in the region.
"Natural gas exports to Baghdad will double in June," Babazadeh said, adding that the amount currently stands at 8.5-9 million cubic meters per day and will reach 14 mcm/d next month.
Babazadeh noted that identifying operational challenges to boost exports, expanding swap operations, transferring gas via pipelines and floating liquefied natural gas or FLNG, entering into talks with new buyers and having access to cutting-edge technology in the sector top the company's priority list.
The official added that NIGC is actively engaged in marketing natural gas derivatives, namely liquefied petroleum gas and sulfur.
"Taking advantage of its strategic geopolitical position in the region and its abundant hydrocarbon reserves, Iran continues to weigh options to transport its profuse natural gas resources to Asian countries like India, China and Pakistan to help them meet their growing gas demand," Babazadeh said.
“The steady gas supply to neighboring states has caused international markets to trust Iran. Moreover, the increase in exports can also help reduce reliance on oil revenues.”
Reportedly, Iran's gas output amounts to 230 billion cubic meters per annum, which will rise to 290 bcm by March 2019. Iran's natural gas export via pipelines to neighboring states, namely Iraq, Turkey, Armenia and Azerbaijan's autonomous republic of Nakhchivan, has reached 43 million cubic meters per day.
Domestic Producers
"It is time domestic producers manufactured not only the industry's spare parts but also vital equipment and heavy machinery, including high-pressure turbo compressors," Hamidreza Araqi, the head of National Iranian Gas Company, said.
According to Araqi, local producers are capable of manufacturing 70% of the equipment in refining sector, all of which comply with international standards.
"More than 98% of equipment in natural gas distribution network are provided by Iranian firms," he said, noting that meeting the deadline of delivering orders is of great importance for NIGC.
Expressing satisfaction with the quality of domestic products, the NIGC chief said, "We trust local producers and we are making efforts to help them improve the quality of their products … They should keep producing without any concerns for the future."
Araqi believes that domestic production reduces the final cost of oil and gas exploration, development and production.
Iran (34 trillion cubic meters) and Russia (32.6 tcm) hold the largest proven gas reserves, according to BP Statistical Review of World Energy.
Latest surveys on hydrocarbon fields also show that the country's recoverable natural gas reserves have risen by 283 billion cubic meters.