the country's production and this year, too. The country's gas production will increase with the completion of phases 18, 19, 20 and 21 of South Pars."
The Iranian president said along with the development of joint hydrocarbon fields, new technologies must be used for enhancing the rate of recovery from oil fields.
Full Gas Supply this Year
Iran's petroleum minister said in the ceremony that NIGC owns one of the most extended service providing networks in the country, adding: "At present, roughly 90% of the country's population (99% of urban and more than 60% of rural population) is under coverage of gas supply network."
Zangeneh said gas supply to villages is among the priorities of the 11th administration and more than IRR 80,000 billion is earmarked for this purpose, this year.
Referring to gas consumption in the country since the 1979 Islamic Revolution, he said: "While gas consumption in the country was around 2.5 bcm in 1978, this figure reached 4.5 bcm in 1989, 46 bcm in 1997, 100 bcm in 2005 and 145 bcm in 2013."
Zangeneh said gas consumption in the country is forecast to reach 284 bcm in 2017, implying that gas consumption would have doubled between 2013 and 2017.
The minister went on to speak about the country's enhanced refining capacity, saying: "While the country's gas refining capacity was 31 mcm in 1978, this figure reached 548 mcm in 2013 and is forecast to reach 1 bcm in 2017."
The minister said the population under coverage of gas supply network was below 1% in 1978, adding that the figure reached 9%, 27% and 61.8% in 1989, 1997 and 2005, respectively. He said the figure reached 87% in 2013 and 90% last March.
Zangeneh expressed hope for the supply of gas to more than 95% of the country's population in 2017, adding that 95% would mean full gas supply in Iran.
Regarding South Pars gas production, the minister said: "Production from this joint gas field was 41 bcm in 2005, which increased to 95 bcm in 2013 and 130 bcm in 2015." Production from South Pars will reach 236 bcm in 2017."
Zangeneh said gas makes up some 70% of the country's energy mix, adding that liquid petroleum products are to be used only for transportation sector over the coming two years. "We will not have liquefied petroleum gas, kerosene and fuel oil consumption," he added.
According to Zangeneh, plans have been worked out for raising gas exports to 200 mcm/d. He said that gas supply to neighboring countries through pipeline and Iran LNG project are prioritized.
He referred to a new generation of petrochemical plants that have been erected in the past years by reliance on the gas industry, saying the output from petrochemical plants totaled 3.193 million tons during the first quarter of the current calendar year which started on March 20. Last year's first quarter petrochemical output was 2.868 million tons.
Gas supply to power plants was another issue raised by Zangeneh. He said that power plants across the country consumed 61 bcm of fuel in 2012, 36% of which was liquefied petroleum gas.
The minister said the LPG share of power plants has dropped in recent years. He said the share was 27% in 2014 and 18% in 2015. He added the share will fall to below 10% this year.
Zangeneh gave assurances that the South Pars project no longer faces any financial shortages, adding that phases 12, 15, 16 and 17 of the giant reservoir have added a total of 160 mcm of gas to the country's gas refining capacity and 140 mcm to the country's onshore gas production capacity.
The minister said phases 19, 18, 20 and 21 are to become operational in the current calendar year.
Zangeneh said the South Pars gas production amounted to 241, 262 and 356 mcm/d in 2012, 2013 and 2015, respectively.
Rivalry with Regional Countries
Mohammad-Reza Nematzadeh, Iran's Minister of Industry, Mine and Trade, also addressed the ceremony. He said that most gas industry equipment is manufactured domestically.
He highlighted the Iranian Ministry of Petroleum's success in exploration, drilling, platform construction as well as onshore and offshore pipe laying, saying Iran is now able to compete with regional countries in these sectors.
He said that a major achievement of the implementation of JCPOA was an increase in foreign investment in Iran, adding that a number of agreements have been signed for investment in Iran's industrial sector in the first quarter of the current calendar year.
Nematzadeh said 38% of the world gas is consumed by industries, adding that this figure is 26% in Iran, which must increase in the future.
New Players in Gas Trade
Mohammad-Hossein Adeli, Gas Exporting Countries Forum (GECF) secretary general spoke about energy market, gas supply and demand, Iran's international standing in gas exports and the relationship between gas and the environment.
Noting that demand for energy will treble in Iran over the coming 25 years, Adeli underscored the necessity of maximum use of renewable energies, saying: "At present, 98% of the country's energy is ensured by oil and gas. Energy consumption in the country is limited mainly to oil and gas and this trend will continue for 25 years."
He said that households and power plants account for the bulk of gas consumption in Iran, adding: "This trend will change in the future and the power plants' share will be more than the households'."
Adeli referred to energy efficiency plans in the country, saying: "If efficiency increases gas consumption will be cut by 20% and we will be able to earmark this gas for exports."
He referred to global gas market, saying: "The US was an importer of gas since 2005, but it has become a gas exporter this year, and Australia is set to overtake Qatar in the coming years. Furthermore, Angola, Tanzania and Mozambique will soon join new players of gas industry."
Adeli also pointed to global gas importers, saying: "Having overtaken Japan, China and India are becoming new players in gas imports."
"Demand for gas will increase in coming years. In this regard, China, the US, India and Iran will account for half of new demand levels," he said.
Gas Supply Hits Record
Deputy Minister of Petroleum Hamid-Reza Araqi, who is also managing director of NIGC, said gas supply to 5,000 villages was put on agenda last year, adding that 2,000 villages have already received gas. "Gas supply to 5,000 more villages is also under way and NIGC plans to supply gas to the city of Zahedan before the 11th administration bows out."
He referred to NIGC plans for protecting the environment, saying 250 mcm/d of gas is delivered to 72 power plants in the country, which makes up 90% of the power plants' fuel consumption.
Araqi said Iran's power plants received 57 bcm of gas last calendar year, which will reach 67 bcm in the current calendar year.
"This amount of gas is equivalent to 60 billion liters of liquid fuel. By this replacement, less carbon dioxide will be generated," he added.
Highlighting record of gas supply in different sectors last calendar year, the official said 700 mcm/d of gas was delivered to consumption spots in the last calendar year. He said this figure will increase to 1.2 bcm by 2025.
Araqi also said that 44 NIGC subsidiaries are currently distributing gas to 23 million households across the country through 35,000 kilometers of pipeline and 300,000 kilometers of network.