In the past 2 years, Iran has been opening its doors to foreign investors, with petroleum companies pushing a growing list of projects.
One of the main catalysts for change is the Institute for International Energy Studies, Tehran, established by the Ministry of Petroleum in 1991 to act as an advisory body. However, it runs as a nongovernmental organization.
The IIES undertakes research for the ministry on a wide range of industry topics, but to the outside world it is best known for its conferences. Next in line is the Persian Gulf Gas Resources conference, scheduled for Nov. 7-8 in Tehran.
Seyed Gholamhossein Hassantash, IIES president, told OGJ that this conference will be the fourth the institute has organized and is an important part of Iran's drive to attract foreign investment for gas projects.
Just as Qatar is developing a variety of projects to exploit the North field, Iran has ambitions for a similar spread of projects to develop South Pars. North field and South Pars are part of a supergiant gas structure that crosses the maritime boundary between the two countries.
New technologies
"The conference," said Hassantash, "will concentrate on gas, both upstream and downstream, and will particularly focus on the prospects in Iran for new technologies such as gas-to-liquids (GTL).
"Because Iran's gas industry hasn't yet become market-oriented, the institute is able to consider a range of options to develop the gas. And since Iran holds the second largest gas reserves in the world after Russia, we would definitely like to ponder all new technologies with potential."
Iran is keen to pursue gas exports in a number of forms: for example, Total is sending associated gas from its Sirri oil fields to the U.A.E. for reinjection to boost oil production there; Iran is negotiating to supply gas to Turkey by pipeline; and GTL is being viewed with exports in mind.
Domestic industry
Hassantash said that Iran has a comparatively well-developed gas transportation grid. Only six cities received piped gas before the revolution, but now more than 300 are connected up.
And the petroleum ministry's brief for continued stimulation of the domestic gas industry is clear cut: "The government would like to replace petroleum products with natural gas to the greatest extent possible."
While associated gas is being reinjected by National Iranian Oil Co. in "huge volumes" to provide enhanced oil recovery in existing fields, the country is putting its gas to more sophisticated use also.
"Now," said Hassantash, "most of Iran's electric power plants have shifted to burning natural gas instead of fuel oil. We are also using compressed natural gas and liquefied petroleum gas to run cars.
"More than 90% of Tehran's taxis now run on LPG, while a growing number of buses in the city burn LPG, and car drivers can now buy CNG at many filling stations.
"The government is encouraging car owners to switch to gas. CNG is cheaper, after the initial investment, and it is much cleaner. This is essential in a city like Tehran, where such schemes have helped reduce the rate of pollution over the last 10 years."
