Iran contains an estimated 812 trillion cubic feet (Tcf) of natural gas reserves -- the world's second largest (next to Russia). Although most Iranian gas reserves are non-associated (i.e., not found along with oil), large onshore oil fields contains approximately 120 Tcf of associated gas, which is either dissolved in crude oil or is in gas caps.

Iran's largest non-associated gas is the South Pars field, which is an extension of Qatar's 241-Tcf North Field. South Pars was first identified in 1988 and originally appraised at 128 Tcf in the early 1990s. However, NIOC-sponsored studies conducted in mid-1996 indicate that South Pars contains an estimated 240 Tcf, of which a large fraction will be recoverable, and at least 3 billion barrels of condensate. Iran's other sizable non-associated gas reserves include the offshore 47-Tcf North Pars gas field (a separate structure from South Pars), the onshore Nar-Kangan fields, the 13-Tcf Aghar and Dalan fields in Fars province, and the Sarkhoun and Mand fields.

In 1996, Iran produced about 2.6 Tcf of natural gas. Of this amount, 1.3 Tcf was marketed, 1 Tcf was re-injected, and 0.3 Tcf was flared. In 1990, Iran undertook an ongoing gas utilization program that is designed to boost production to 10 Tcf per year by 2010, reduce flaring, provide gas for EOR re-injection programs, and allow for increased gas exports abroad.

The dual Aghar-Dalan field development has been one of National Iranian Gas Company's (NIGC) recent successful gas utilization projects. After coming online in mid-1995, the Aghar and Dalan fields produce approximately 600 million cubic feet per day (Mmcf/d) and 800 Mmcf/d, respectively. Gas from both fields is processed at a $300-million gas processing facility at the Dalan field, which is also the location of a 40-MW, gas-fired power plant. Most of the treated gas from the Dalan processing plant is carried through a 212-mile pipeline for re-injection in the Marun field and other oil fields in Khuzestan province.

Oil		Natural Gas
Oil...	Production...	Natural gas...
Onshore developments...	offshore developments...	New field developments projects...
Terminals...	Refining...	Natural gas exports...