(MENAFN) In a recent announcement, Iranian Oil Minister Javad Oji outlined ambitious plans to significantly increase the country's gas production over the next five years. The Iranian Student News Network quoted Oji during the seventh summit of the Gas Exporting Countries Forum in Algeria, where he disclosed Iran's aim to elevate gas production from the current 1.07 billion cubic meters per day to 1.3 billion cubic meters per day. This surge, Oji emphasized, is essential to solidify Iran's pivotal role in the global energy landscape.
To achieve this target, Iran plans to inject a staggering $80 billion into the development of its gas fields. However, Iran's ability to attract foreign investors has been severely hindered by the re-imposition of sanctions by the United States in 2018, under the administration of then-President Donald Trump. Consequently, Iran has largely relied on domestic companies to spearhead the development of its energy sector, despite the financial constraints faced by these entities.
Iran's gas production has primarily been directed towards domestic consumption, with a considerable portion lost to gas flaring. Alarmingly, experts have warned of a potential deficit of 300 million cubic meters per day in the country's gas supply in the near future. This looming shortfall has been exacerbated by surging domestic gas consumption, which typically peaks at around 700 million cubic meters per day during the winter months. In response, the Iranian Oil Minister has urged citizens to exercise restraint in their gas usage.
As Iran navigates economic challenges and international sanctions, its ambitious plans to ramp up gas production underscore its determination to bolster its energy sector and assert its influence in the global arena. However, achieving these goals amidst domestic demand pressures and financial constraints poses significant hurdles for the nation's energy ambitions.
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