Iran Finds Major Gas Reserves Amid War-Hit Energy Sector

Iranian Petroleum Minister Mohsen Paknejad announced the discovery of more than 212 billion cubic meters of natural gas in the southern Fars province. This find is a significant boost to Iran's energy sector, which has been heavily affected by war and damage to its infrastructure.

The field contains over 7.5 trillion cubic feet of gas, with approximately 161 billion cubic meters estimated to be recoverable at a recovery rate of more than 72 percent. This 'sweet gas' has very low levels of hydrogen sulfide and other sulfur compounds, reducing processing costs.

The discovery also includes significant quantities of gas condensates, adding substantial economic value. The recoverable gas is equivalent to the output of one phase of Iran's giant South Pars gas field for about 15 years.

However, it may be years before new production from this field can compensate for current losses. Bloomberg reported that any new production would likely be delayed due to ongoing damage and underinvestment in the energy sector.