Development of the Balal joint gas field enters a new phase

The head of the project for the development of the Balal joint gas field announced the completion of drilling two wells at this field. He specified that after these wells are put into operation, the daily gas production in Iran will increase by approximately 14 million cubic meters, which partially compensates for the country's gas deficit.

In an interview with SHANA, Ehsan Mohammadi stated that the overall progress of the project has reached about 42%. He noted the successful completion of two work packages—drilling appraisal wells and manufacturing and installing the casing string—without any deviations from the schedule. Two other packages, concerning the fabrication and installation of the deck, as well as the drilling and completion of eight wells, have reached about 50% progress.

According to the field drilling schedule, Mohammadi explained that a total of eight wells will be drilled in Balal. Currently, the drilling of two wells is complete, and work on the remaining wells is being carried out in a batch drilling mode.

Emphasizing the significance of the field for increasing the country's gas capacity, the head of the project for the development of the Balal joint gas field stated that by the time the field is commissioned within the next two years, Iran's daily gas production will increase by approximately 14 million cubic meters, which will help solve part of the gas shortage problem.

Mohammadi also recalled that utilizing the potential of development projects and accelerating current initiatives—especially in light of the existing gas deficit—is a national necessity, and all sectors must work to restore and increase the country's gas capacity.

Speaking about the work packages of the Balal field development plan, he added that the project is being implemented within five work packages, including drilling, casing construction, deck fabrication and installation, well completion, and pipeline construction. Despite various difficult conditions, such as sanctions, the COVID-19 pandemic, and two recent wars, the project implementation has not stopped.

The Balal gas field, containing about 3 trillion cubic feet of gas and over 100 million barrels of proven gas condensate, is considered one of the country's key assets for increasing gas production and compensating for part of the energy imbalance. Thanks to the acceleration of this field's development plan under the 14th administration, and despite two imposed regional conflicts during this period, the casing string for the Balal gas field has been installed, and drilling operations have begun.

The Balal field represents a strategic joint hydrocarbon asset located in the Persian Gulf and shared between Iran and neighboring Qatar. With reserves of about 3 trillion cubic feet of gas and over 100 million barrels of proven gas condensate, it is a critically important pillar for Iran's energy security and economic stability.

Upon full commissioning, planned within the next two years, the field is expected to add approximately 14 million cubic meters to Iran's daily gas production. This significant increase is vital for mitigating the country's constant energy imbalance, especially during peak winter consumption periods when domestic demand often exceeds supply.

The development plan includes five comprehensive work packages: drilling, casing construction, deck fabrication and installation, well completion, and pipeline laying. Overall project progress is currently 42%. The installation of the offshore casing string has been completed, and drilling operations are actively underway. Two of the eight planned wells are finished, while batch drilling continues for the remaining six, and the deck and additional drilling packages are about 50% complete.

It is important to note that the project demonstrated exceptional resilience, facing strict international sanctions, the global COVID-19 pandemic, and two regional conflicts during the current administration, yet the project timelines were never suspended. The 14th administration prioritized accelerating the development of this field, viewing it as a national necessity for rapid recovery and strengthening domestic production capacity, thereby reducing dependence on imports and helping to stabilize the regional energy network.

Iran possesses more than 28 joint oil and gas fields with neighbors, including giants like South Pars (jointly with Qatar) and Azadegan (jointly with Iraq). The development of these fields is not just an industrial project but a strategic imperative with profound implications for national income, energy security, and geopolitical standing. The 14th administration has made this a cornerstone of its economic policy, striving to secure Iran's share in these critical resources.

Strategic Importance

The urgency is linked to competitive pressure. For instance, Qatar has increased its production from South Pars by approximately 1.5 times compared to Iran in recent years, representing billions of dollars in lost revenue. To address this issue, the government has allocated a colossal $130 billion for the development of joint fields. These investments are aimed at securing Iran's share in resources, stabilizing energy supply, and addressing public concerns about falling behind neighbors who often utilize these reserves more aggressively.

Main State Plans and Projects

The government's strategy includes several parallel initiatives: Azadegan Field (Phases 1 and 2), which is Iran's largest joint field, aims to increase production by 40,000 barrels per day in its second phase over 18 months. This is part of a broader strategy to optimize extraction and increase the national recovery factor. Three major projects—Azadegan, Azar, and Masjed Soleiman—require direct investments of $12 billion.

The Western Karun cluster, located along the Iran-Iraq border and including Yadavaran and Yaran, is considered a strategic center for increasing national production volume and counteracting the natural decline of older fields. Production at South Azadegan has already increased, with recent data showing output reaching 84,200 barrels per day.

New drilling contracts have also been signed for the Aban and Paydar Gharb fields to accelerate development and increase national production capacity. Legislative support now allows for production-sharing agreements under the Seventh Development Plan, and legal incentives and support measures for investors in joint fields exceed those for independent ones.

There is a strong impetus in technology and localization towards using domestic technological companies, reducing dependence on foreign technologies, and implementing advanced methods such as directional drilling for the first time in Iran's joint oil and gas fields. The financial scale is enormous: estimates suggest that required investments for these fields by the end of the 7th Development Plan (2029) will amount to over $20 billion annually for Iran's oil exports. Long-term contracts for projects like Azadegan will bring the government approximately $140 billion in revenue.

In conclusion, the development of joint oil and gas fields is a central element of Iran's national strategy to secure its wealth, energy future, and geopolitical influence. Through massive investments, technological progress, and supportive legislation, the government seeks to maximize production, balance the output of neighboring countries, and strengthen its position in the global energy market.

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www.tehrantimes.comAugust 25, 16:10

Iran's gas transmission system capacity increased thanks to new pipeline sections

The CEO of the Iranian Gas Transmission Company announced an increase in the country's gas transmission capacity. This was made possible by commissioning new sections of national main pipelines and launching pressure boosting stations.

Increase in Iran's gas transmission capacity

In an interview with SHANA, Peyman Hezarei, presenting the priorities of the Iranian Gas Transmission Company ahead of the cold months, emphasized that the most important task is maintaining the stability of the entire transport network and ensuring the full readiness of facilities for the peak winter consumption period.

He noted that the company is at the center of the chain from gas production to consumption. According to him, the company's duty is to transport the maximum possible volume of gas produced in the country from production sites to consumption centers, avoiding downtime due to network limitations.

The CEO also stressed that modernization, upgrading, and maintenance programs for facilities are planned, and the necessary repair and maintenance work has already been completed. Furthermore, various scenarios have been developed for organizing the gas transmission network considering production and consumption conditions during the cold period.

Enhanced readiness of the transport network for the upcoming winter

Hezarei, commenting on the special conditions of the coming winter, stated that due to the reduction in natural gas production capacity in parts of the country following damage to the South Pars refineries, new network management scenarios need to be developed. This is necessary to guarantee stable gas supply to various consumer sectors, especially households.

He specified that the Iranian Gas Transmission Company does not handle increasing production, but is obliged to transport all produced gas from the south of the country to various regions, including the north, northeast, and center. The country's high-pressure gas pipeline network is designed as an extensive and capillary system, which allows for changing the network configuration, ensuring maximum stability and continuity of supply.

Referring to last winter's experience, the CEO reported that despite a significant increase in public consumption, network management and gas supply to consumers were ensured through 55 operational reconfigurations in different parts of the country and round-the-clock deployment of operational forces in remote areas, achieved through the efforts of employees of the National Iranian Gas Company.

Hezarei added that this winter's conditions are expected to be more challenging, so there is a possibility of increasing the number of operational points and network reconfigurations to maintain the stability of gas transmission.

He also announced a plan to achieve independence for Gas Transmission Region 11. This region, covering the Sistan and Baluchestan province, will soon begin operating independently after the creation of 10 operational regions in the country. The CEO noted that given the geographical size of the region, the large distance between facilities, and the ongoing development of industry and consumers in Sistan and Baluchestan province, the independence of Region 11 could become the basis for more effective network management and accelerating development programs.

Regarding the readiness of the gas transmission network for the cold season, Hezarei stated that in addition to repair and maintenance measures, other programs have been implemented in the National Iranian Gas Company to increase the throughput and stability of the network. He mentioned that a section of the ninth national pipeline has been commissioned, and the second phase of one of the country's major trunk lines will also come into operation this year, strengthening gas transmission to the eastern regions of the country. A number of new pressure boosting stations have also been put into service, increasing the country's gas transmission capacity compared to last year.

Use of solar power plants for energy management

The CEO of the Iranian Gas Transmission Company reported that these new capacities, along with training drills and network reconfigurations, can contribute to improving gas transmission conditions during peak consumption periods.

Highlighting the valuable measures taken by the repair and maintenance sector employees, Hezarei continued that some types of repairs that previously required gas shutdowns, pipeline cutting, and venting some gas into the atmosphere are now being carried out using new technologies and methods without interrupting the gas flow and without environmental emissions. Such work not only prevents gas supply interruptions but also leads to significant savings and prevention of gas losses.

Concerning energy consumption management programs at gas transmission facilities, he said that unified energy management indicators have been developed and implemented across the country to compensate for part of the energy consumption at pressure boosting stations. Currently, about 2.5 megawatts of solar generation capacity is distributedly used at these facilities, and the use of solar power plants is planned.

The CEO of the Iranian Gas Transmission Company concluded that the application of renewable energy sources, especially solar, in addition to reducing traditional energy consumption, contributes to increasing the efficiency and sustainability of the country's gas transmission facilities.

The Iranian Gas Transmission Company manages the country's vast high-pressure pipeline network, connecting natural gas production in the south with consumption centers in the northern, northeastern, and central regions. The company is responsible for maintaining stability during peak winter demand, managing pressure boosting stations, carrying out maintenance without stopping service, and increasingly implementing solar energy to power its facilities. Thanks to new pipeline sections and independent regional operations in Sistan and Baluchestan, the company is constantly expanding capacity to ensure reliable and efficient gas delivery to households and industrial consumers across the country.

www.tehrantimes.comAugust 16, 18:01

Iran added over 2000 MW of new capacity to the national power system

According to data from the Thermal Power Generation Company, Iran has increased the capacity of its national grid by 2028 megawatts, reaching 75 percent of the target of 2709 megawatts for the current Iranian calendar year, which began on March 21.

Ruhollah Esfahani, Deputy for Project Development, reported that despite challenging conditions over the past seven months, the development of any power plant projects has not been suspended. Key achievements include a 183-megawatt gas unit at the Neka power plant, which was commissioned in 99 days, and a 345-megawatt steam unit at Rudshur—the largest of its class in the Middle East, boasting an efficiency of 58 percent and annual fuel savings exceeding 700 million liters.

Steam units were also put into operation at the Asaluye and Ferdowsi power plants, completing a package of 18 units under a 3000-megawatt contract. Furthermore, the first geothermal power plant, located on the slopes of Sabalan with a capacity of 5.4 megawatts, is now operational and capable of supplying electricity for 95 percent of the year.

Masoud Moradi, Deputy for Production Operations, noted that thermal power plants account for over 93 percent of the country's total installed capacity of 101,366 megawatts. Despite fuel shortages in winter and disruptions related to the war, maintenance programs have been largely executed, allowing for a record readiness rate of 98.8 percent during peak consumption and reducing emergency shutdowns to only 1.2 percent.

In the near future, two additional units are planned for launch—a 300-megawatt combined cycle steam unit and a 183-megawatt gas unit—which will add another 490 megawatts to the grid. Moradi also called on the public to cooperate in managing consumption during the remaining hot weeks.