Iran’s Oil Ministry in the 14th administration has reported unprecedented levels of raw natural gas production as the country grappled with persistent energy imbalances and a consumption basket heavily dependent on natural gas — challenges that have intensified in recent winters.
By pursuing a dual strategy of demand management and expanded output, the ministry said it set rare records in raw gas production. Officials say the gains helped stabilize winter consumption while outlining a more durable outlook for national energy security.
Iran’s oil and gas sector, a key engine of the economy and a pillar of energy security, holds a strategic position in the country’s economic structure. Iran’s standing among the world’s top three gas producers, achieved amid sweeping sanctions, underscores domestic capabilities and continuity of production under pressure.
With the start of the 14th administration, energy imbalances emerged as a critical concern. In response, the Oil Ministry prioritized immediate production increases, while also emphasizing consumption reform, power plant efficiency upgrades and renewable energy development — responsibilities shared with other state bodies.
The approach yielded a record daily output of 1.0976 billion cubic meters of raw gas in the winter of 1403 (2024-25), the ministry said. That figure rose again in Dey, surpassing 1.098 billion cubic meters per day. The ministry attributed the results to precise planning for major overhauls during warmer months, reduced downtime and sustained workforce efforts — even during a 12-day conflict.
South Pars: Backbone of National Supply
South Pars Gas Field continues to play a decisive role, accounting for roughly 70% of Iran’s gas needs. Multiple records were set for daily rich gas extraction from the shared field over the winters of 1403 and 1404 (2024-26).
Production ranged from 710 million to 716 million cubic meters per day in the winter of 1403, culminating in a historic 730 million cubic meters per day in Bahman 1404 — the highest level recorded in two decades of development. Over the past two years, daily extraction records have been broken 10 times, officials said.
Drilling of 14 new wells over the past 15 months added about 25 million cubic meters per day to capacity. With four additional wells expected to come online, the increase is projected to reach nearly 30 million cubic meters per day — a notable jump compared with the 11 million cubic meters per day added in the three years preceding the current administration.
Pressure Boosting in a Mature Field
As South Pars enters the second half of its lifecycle, a pressure-boosting initiative has been elevated to a strategic priority. Foundational and advanced studies for pressure-boosting hubs have been completed, and the contract for the first hub was signed with Petropars under the Iran Petroleum Contract (IPC) framework.
Contracts for hubs two through seven have also been signed with Iranian companies under engineering, procurement, construction and installation (EPCI) arrangements. Securing financing remains a critical requirement before full-scale execution can begin.
Beyond South Pars, Pars Oil and Gas Co. cited several production-enhancement measures, including construction and installation of the jacket for the shared Balal field, creation of 20 million cubic meters per day of capacity at the Kish field, progress in developing the Farzad field and the start of seabed survey operations in North Pars.
Central Regions: Output Gains From New Wells
The Central Oil Fields Co. has also maintained a significant role, producing about 240 million cubic meters of gas per day. New wells brought online at the Dalan, Day, Mozdouran and Tang-e Bijar fields added more than 10 million cubic meters per day to production capacity.
Other milestones include commissioning of the Dehloran pressure-boosting station and the pre-startup phase of the 3100 gas and LPG processing plant.
During the winter and concurrent with Ten Days of Dawn celebrations, the Tous gas field development project and the Dehloran flare gas recovery and pressure-boosting facility were inaugurated in the presence of the president. Development of the Tous field is expected to support grid stability, particularly in northeastern Iran.
Storage: Buffer for Peak Demand
In the storage segment, the volume of gas injected into the Sarajeh and Shourijeh reservoirs rose by about 20%, the ministry said. Daily withdrawal capacity during the cold season reached 30 million cubic meters per day and is projected to increase to 55 million cubic meters per day upon completion of Phase 2 expansions.
NISOC: Cutting Flaring, Raising Supply
The National Iranian South Oil Co., responsible for roughly 10% of the country’s gas production, reported progress in collecting associated petroleum gas. Daily gas output increased from 99 million to 107 million cubic meters, while flaring volumes declined from 27 million to 22.2 million cubic meters per day.
Major flare gas recovery projects — undertaken in partnership with Bidboland Persian Gulf Gas Refinery and Marun Petrochemical Co. — along with gas optimization initiatives and private-sector investment, have strengthened prospects for further flaring reductions through 1405 and 1406 (2026-28).
Outlook: Production and Efficiency
The Oil Ministry’s performance since the start of the 14th administration reflects a coordinated, program-driven push to maximize existing capacity. Record-setting production, field development, lower flaring and expanded storage all point to a national effort to bolster gas supply resilience.
Officials caution, however, that sustaining progress will require parallel advances in consumption efficiency across residential, industrial and power-generation sectors — ensuring that natural gas resources continue to support sustainable development and reinforce Iran’s energy security.