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Survey of Energy Resources 2007

Natural Gas Country Notes

Iran (Islamic Republic)

Proved recoverable reserves (bcm)

26 740

Production (net bcm, 2005)

97.9

R/P ratio (years)

> 100

Year of first commercial production

1955


Iran's proved reserves are second only to those of the Russian Federation, (although now closely approached by those of Qatar). They account for 15% of the world total, and exceed the combined proved reserves of North America, South America and Europe (excluding the Russian Federation). The Iranian WEC Member Committee reports that at the end of 2005 proved reserves of natural gas were 26 740 bcm, marginally higher (+0.6%) than the end-2002 level reported for the 2004 Survey of Energy Resources.

For many years only minute quantities of associated gas output were utilised as fuel in the oil fields or at Abadan refinery: by far the greater part was flared. Utilisation of gas in the industrial, residential and commercial sectors began in 1962 after the construction of a pipeline from Gach Saran to Shiraz.

In 2005, 64% of Iran's gross production of 153 bcm of gas was marketed; about 21% was re-injected into formations in order to maintain or enhance pressure; about 10% was flared or vented and 5% lost through shrinkage and other factors. The marketed production volume of about 98 bcm was augmented by 5.8 bcm of gas imported from Turkmenistan, whilst 4.3 bcm was exported to Turkey. Iran's principal gas-consuming sectors are electricity generation (39% of total consumption in 2004), residential users (32%) and industry (19%).