Yasin Khalili

Iran possesses the world’s second-largest proven natural gas reserves estimated at over 34 trillion cubic meters positioning it as a key player in the future of global energy supply. Despite this vast resource base, only around 70% of Iran’s technically recoverable reserves are currently under active development, largely due to a combination of technological, infrastructural, economic, and geopolitical challenges. These include aging processing facilities, limited access to advanced gas recovery technologies, sanctions affecting foreign investment and equipment imports, and constraints in export capacity such as LNG infrastructure.

This paper offers a comprehensive assessment of Iran’s major gas fields and analyzes the current production trends and bottlenecks. Domestic consumption, which accounts for over 75% of total production, is dominated by electricity generation, petrochemical feedstock, and reinjection for oil recovery. As Iran faces increasing internal demand and environmental pressures, the strategic role of natural gas as a transition fuel is critical for achieving national sustainability and emission-reduction goals.

The study models three gas development and utilization scenarios business-as-usual, technology-accelerated, and export-oriented and evaluates their respective impacts on production capacity, emission profiles, and economic returns. Under a moderate modernization strategy, gas recovery efficiency could improve by 15–25%, while emissions from flaring and venting could be reduced by up to 40%. The paper concludes with policy and investment recommendations, emphasizing the need for digital technologies, public-private partnerships, regional energy cooperation, and environmentally sustainable field development strategies to align Iran’s gas sector with future energy transition pathways.

Co-author/s:

Saeed Abassi, Assistant Professor of Research Institute of Petroleum Industry, RIPI (Research Institute of Petroleum Industry).