Iran to finalize USD6 billion in contracts to enhance gas recovery from South Pars

(MENAFN) Iran's oil minister announced plans to finalize USD6.0 billion in contracts aimed at boosting pressure at the South Pars gas field, which is considered a critical national priority. During a meeting with members of the parliamentary Article 90 Commission on December 24, Mohsen Paknejad emphasized the importance of implementing pressure-boosting facilities at South Pars to address energy challenges.

Paknejad confirmed that the financial arrangements for the project have been secured, with necessary legal frameworks in place to facilitate investments from energy-intensive industries, such as petrochemical and steel companies. He pointed out that private investors could recover their investments through gas deliveries once production begins, creating a viable incentive for participation.

The minister also highlighted structural issues within the country’s energy sector, specifically noting the current energy imbalance, which has been exacerbated by years of underinvestment in upstream energy sectors. Despite these challenges, Paknejad underscored the importance of addressing these issues through investment in gas fields and infrastructure.

While the Oil Ministry manages gas production and investment, Paknejad acknowledged that partial relief could be achieved through gas imports and swaps. However, he stressed that these measures alone would not be sufficient to resolve the broader energy imbalance in the country.

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