TEHRAN – Iran’s Oil Minister has revealed plans to finalize $6 billion in contracts aimed at increasing pressure at the South Pars gas field, a key national priority.
Speaking on Tuesday, December 24, during a meeting with members of the Parliamentary Article 90 Commission, Minister Mohsen Paknejad emphasized that enhancing pressure at South Pars is critical for the country’s energy needs.
Paknejad confirmed that the financial arrangements for the project are already in place and ready to move forward.
The minister also mentioned that the legal framework is set for investment from energy-intensive industries, such as petrochemical and steel companies, in Iran’s gas fields. He added that private investors would be able to recover their investments through gas deliveries once production begins.
Addressing challenges in the country’s energy sector, Paknejad explained that the ongoing energy imbalance is a result of years of underinvestment in upstream industries.
While the Oil Ministry is responsible for overseeing gas production and investment, he acknowledged that gas imports and swaps could provide partial relief. However, he noted that these measures alone would not be enough to fully resolve the energy imbalance.
Related Topics:
- Is LPG Gas Cheaper Than Mains Gas? A Comprehensive Guide
- How Is Renewable Gas Made?
- What is a Gas Pipeline?