Iran's energy sector review

Iran’s natural gas production has reached 660 million cubic meters per day (mcm/d) and the country is expected to increase this volume to 760 mcm/d by next spring. Iran has so far completed South Pars field’s phases 1 to 10. Meanwhile, phases 12, 15 to 18 opened early and were expected to become fully operational within a year. ( Read more... )

President of BP Middle East says this company expects to start natural gas production from Oman's Khazzan field by 2017 at a rate of 1 billion cubic feet a day. Michael Townshend, president of BP Middle East told reporters in Abu Dhabi that BP plans to drill 20 wells in 2015 and increase them to 50 wells in the next couple of years, and is already building a plant to handle the first 1 bcf (or 28.3 mcm/d) of gas. Total investment in the first phase to reach the initial gas production target will be $16 billion. BP's statement came while Oman and Iran face disagreement on the route of under-water pipeline, aimed to export 10 billion cubic meters per annum of Iranian gas to Oman. Iran sealed a deal with Oman on March 2014 to export 30 mcm/d of natural gas. It was expected the deal be implemented in three years, or simultaneously with the start of Khazzan. But, Oman and Iran have yet to agree on the route of a 260km underwater pipeline to carry Iranian gas to Oman, Om

Chinese president who arrived in Islamabad on April 20 is expected to announce his country’s $46 billion investment in Pakistan. Reports say during his visit, Xi Jinping is set to sign various agreements with Pakistan officials for road construction, railroad building, power plants construction and gas pipelines establishment. Last week the Wall Street Journal reported that China would invest $2 billion in the Peace Pipeline project on Pakistani soil. Iran’s official IRNA news agency reported on Sunday that China would make 85 percent of the Peace Pipeline’s overall investment. IRNA also added that China National Petroleum Corporation would probably undertake the project. Iran and Pakistan signed a gas agreement under former Iranian President Mahmoud Ahamadinejad, which according to, Pakistan was set to import 22 million cubic meters per day (mcm/d) of natural gas from Iran as of 2015. But because of finance problems, Pakistan has not yet managed to establish its section of