The US Energy Information Administration said Iran’s natural gas production had grown steadily over the past two decades despite international sanctions on the Islamic Republic’s energy exports, imports of certain technologies, and access to the international financial system. According to EIA, Iran produced 8.4 Tcf of dry natural gas in 2019, making it the world’s third-largest producer behind the US and Russia.
Iran’s offshore South Pars field, which is shared with Qatar, is where much of the growth comes from. South Pars was discovered in 1990 and began production in 2003. So far, Iran has started production in 23 of the 24 development phases, although not all of them have achieved full production capacity. According to some estimates, the field can pump up to 9.49 Tcf of natural gas at maximum capacity.
Domestic demand has been the main growth driver for Iran’s gas output as it is not affected by the sanctions. Iran’s residential and commercial customers use gas for space heating, while the industrial sector, especially the petrochemicals industry, uses it for feedstock. Iran also exports relatively small volumes of gas through pipelines to Iraq, Turkey, Armenia, and Azerbaijan.
