Iran New Gas Discovery Signals Hope, Oil Minister Says

Iran New Gas Discovery Signals Hope, Oil Minister Says
(Saturday, August 29, 2026) 13:28

TEHRAN, August 29 (NIPNA) – Iran’s recent discovery of a major natural-gas reservoir in southern Fars province is a strategic strength for the country’s future, but the priority should be turning energy reserves into economic value, Petroleum Minister Mohsen Paknejad wrote in an article published by Iran newspaper.

The newly discovered reservoir, located about 10 kilometers northwest of Khonj in southern Fars, is surrounded by several existing gas fields, including Eram, Homa, Shanul, Sefid Baghun, Sefid Zakhour and Halgan.

The reservoir contains sweet gas and gas condensates. Based on an average gas price of 29 cents per cubic meter, its estimated economic value is about $45 billion, Paknejad said.

Initial indications of gas reserves were confirmed in December 2024, during the first months of the administration of President Masoud Pezeshkian. Subsequent technical reports from exploratory wells confirmed the presence of about 7.5 trillion cubic feet of gas, according to the minister.

Paknejad described the discovery as a sign of a more hopeful outlook for Iran, particularly following a period of heightened uncertainty.

Gas Discovery Equivalent to 15 Years of One South Pars Phase

To illustrate the scale of the discovery, Paknejad said the recoverable gas in the reservoir is equivalent to about 15 years of production from one phase of the South Pars gas field.

The volume is also roughly equivalent to the annual gas consumption of 10 major, high-consumption Iranian provinces, or around seven years of consumption in Isfahan province and six years of consumption in Tehran based on recent consumption levels.

The discovery comes alongside confirmation late last year that the estimated gas in place at Iran’s Pazan gas field had increased by 10 trillion cubic feet.

Taken together, Paknejad said, the two developments represent an unusually significant level of gas exploration success over a relatively short period.

Energy Security Becomes Increasingly Important

The minister linked the significance of the discovery to growing concerns over energy security around the world.

Reliable energy supplies have become an increasingly important concern for developed economies, Paknejad said, adding that recent regional tensions have further highlighted the risks surrounding the stability of global energy supplies.

The Strait of Hormuz, which he described as a critical artery for global energy flows, has also underscored Iran’s strategic position in the international energy system.

Iran’s substantial hydrocarbon reserves, meanwhile, provide the country with a potentially strong foundation for long-term energy security, according to Paknejad.

He said greater certainty over energy supplies in the coming decades could serve as a catalyst for economic and industrial development by providing a more predictable foundation for long-term planning.

Turning Reserves into Value

Despite the strategic importance of new discoveries, Paknejad said simply possessing large hydrocarbon reserves is not enough.

“Every new reserve discovery, including the latest reservoir, is a fundamental strength in Iran’s future equations,” he wrote. “However, the important priority is to direct the country’s energy resources toward creating added value.”

That means improving energy efficiency, establishing more sustainable patterns of consumption and fundamentally changing the way energy demand is managed, he said.

Paknejad described more efficient energy consumption not only as an economic necessity but also as a form of responsibility toward Iran’s future generations.

The country’s current energy reserves, he said, should be regarded as a strategic inheritance for future generations, providing them with the security needed to continue Iran’s economic and industrial development.

 


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