With a production of 278 billion cubic meters of natural gas, Iran is the third largest gas producer in the world. However, in gas exports, this country has only exported less than 9 billion cubic meters in 2024, ranking 23rd in this regard. This contradiction between production and exports indicates serious challenges in Iran's presence in the global market.
Challenges of Iran's Gas Exports
According to OPEC statistics, Iran has the second largest proven natural gas reserves in the world, especially in the South Pars field, which is known as the largest gas field in the world. However, domestic gas consumption in Iran is significantly high and is expected to reach 271.3 billion cubic meters by 2025. This figure is equivalent to 97 percent of the country's available production. Dependence on gas, especially in the cold seasons, significantly increases and forces the government to limit exports to meet the needs of the people.
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Investment and Technology Barriers
International sanctions are also a key factor in limiting Iran's gas exports. These sanctions hinder foreign investment and the procurement of advanced equipment and technologies needed for the development of gas fields and LNG export facilities. Currently, Iran relies on pipelines and neighboring countries for its gas exports, which limits the number of potential buyers.
Comparing with Qatar, which is located on the same gas field, highlights the stark differences in export capabilities. Qatar, with lower production than Iran, has exported more than 21 times Iran's gas. In other words, this country has been able to turn its gas resources into a commodity for the global market.
As a result, despite its reserves and high production capacity, Iran has not yet been able to effectively participate in the global gas market. Until economic, infrastructural, and technological challenges are resolved, this situation will not change.
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