Iran announces massive gas discovery

Iran announced a massive gas discovery in the country’s south on Sunday amid an ongoing military conflict with the US.

Oil Minister Mohsen Paknejad said a new field containing more than 7.5 trillion cubic feet (Tcf) of gas was discovered in the southern province of Fars, with around 5.7 Tcf recoverable, the semi-official Tasnim news agency reported.

Paknejad said the discovery has added a significant new resource to Iran’s national hydrocarbon reserves following efforts by Iranian authorities to identify and develop new deposits.

He said the field’s recoverable gas reserves are equivalent to enough gas to supply one phase of the South Pars gas field for around 15 years.

The minister described the newly discovered gas as “sweet gas,” saying this would reduce both development and operating costs.

Paknejad said the field also contains significant volumes of gas condensates, which, in addition to the intrinsic value of its gas reserves, could generate tens of billions of dollars in new wealth for Iran.

Iran and the US signed the memorandum of understanding in June through Pakistani and Qatari mediation, ending hostilities that began in February and to pursue negotiations toward a final agreement.

Talks have since stalled amid disputes over implementation of the memorandum and arrangements for navigation through the Strait of Hormuz, a critical route for global oil and gas exports.