1

Natural Gas Industry

in I.R.IRAN

Past, Present, Future

March, 2017

6 World’s Top Natural Gas Reserves Owners

2

Russia(2)

Iran(1)

Saudi Arabia

Qatar (3)

34

25

8

Turkmenistan(4)17

The US(5)

TCM

32

3

South Pars:

The World’s Biggest

Independent Gas

Reservoir

Iranian share: 14 TCM of

NG+18 Billion Barrels of

Condensate

The World’s Natural Gas Production in 2015: 3539 BCM

4Ref: BP Statistical Review of World Energy 2015

Indonesia

Algeria

Saudi Arabia

Norway

China

Canada

Qatar

Iran

Russia

The US

0 100 200 300 400 500 600 700 800

75

83

106

117

138

164

181

193

573

767

The World’s Natural Gas Consumption in 2015: 3469 BCM

5

The UK

Germany

Mexico

Canada

Saudi Arabia

Japan

Iran

China

Russia

The US

0 100 200 300 400 500 600 700 800 900

68

75

83

103

106

113

191

197

392

778

6

IGAT 1

Export line (Turkey)

IGAT 2

IGAT 3

IGAT 4

IGAT 5

IGAT 6 & Export Lines to Iraq

IGAT 7 & Export Lines to

Pakistan, Oman

IGAT 8IGAT 9 & export line (Europe)

IGAT 10

IGAT 11

North & North-East 2nd line

Sarakhs-Neka-Rasht

Export line (Armenia)Under Construction Lines

KEY Indices of NIGC in 2015

7

NG Production 210 BCM

NG Treatment 176 BCM

NG Distribution 180 BCM

High Pressure Transmission Pipelines (Jan 2017) 37400 km

Gas Distribution Network (Jan 2017) 306113 km

PowerPlants (Jan 2017) 79

No of Cities Fueling by NG (Jan 2017) 1082

No of Villages Fueling by NG (Jan 2017) 22655

Share of NG in National Eenergy Mix 75%

Export 8.6 BCM

Import 9 BCM

NIGC Development History

8

Natural Gas Distribution Between Sectors

9

Residentia, Commercial,

Industries; 89; 46%

Power Plants; 58; 30%

Bulk Industries; 33;

17%

Injection ; 4,4; 2%

Export; 8,6; 5%

0%

National Energy Mix in 2015: 2067 MTOE

10

Natural Gas; 172,1

Hydro-Electricity; 4,1

Oil; 88,9

Nuclear Energy; 0,8

Coal; 1,2 Renewables; 0,1

BP, Statistical review of world energy, 2016

Present and Future Image

11

Iran population:80 Milion

urban areas Natural gas Coverage: 97%

Rural areas natural gas Coverage: 70%

More than70% of total Iran energy needs is provided by Natural gas( Directly and Indirectly)

Overall natural gas coverage : 90% of Iran population now, 95% : in 2018

Iran Gas production = 210 billion Cubic meter /year now , future : 360 BCMY

12

NATURAL GAS TRADE

Growth Rate of Energies Until 2035

13

0,8

1,9

0,8

6,3

1,8 1,7

0

1

2

3

4

5

6

7

Coal NG Oil Renewables Nuclear Hydroelectricity

Iran’s Active Gas Contract

14

Trade PartnerCapacity(BCM/Y)

Contract Situation

StartingDate

ExportTurkey7-10Existing2001

Aerbaijan0.3-0.7Existing2005

Armenia1.1-2.3Existing2007

ImportTurkmenistanphase 1

8Existing1997

Turkmenistanphase 2

Up to 14Existing2007

Finalized Export Contracts

15

PROJECTCapacity

(BCM/Y)SITUATIONSTARTING DATE

pakistan7.8GSPA

Finalized2016

Iraq –

phase 15.4

GSPA

Finalized2016

Iraq – phase

24.4

GSPA

Finalized2017

Turkmenistan

- Azerbaijan5.8

SWAP

Contract

Finalized

2017

Under Negotiations

16

PROJEC

TCapacity (BCM/y)SITUATION

STARTING

DATE

INDIA10.9Negotiating2017

OMAN10.2Basic Conditions

Signed2016

KUWAIT3.1Negotiating2017

TURKEY–

2nd

Phase0.5-3HOA Signed2015

NG Trade Opportunities with Neighboring Countries

17

DEVELOPMENT OBJECTIVES 2020

18

-The World’s 3rd NG Producer

-Getting10 Percent of NG Traded

Internationally

-Pioneer of the NG Technologies in the

Region

NG Supply Until 2021 (BCM/Y)

19

RICH GAS Deliverable to NIGC

IMPORT

PRODUCTION+IMPORT

0

50

100

150

200

250

300

350

400

20162017

20182019

2020

241

309332

358385

1414

1414

14

235

298318

342367

RICH GAS Deliverable to NIGC IMPORT PRODUCTION+IMPORT

NG Demand Until 2021 (BCM/Y)

20

0

50

100

150

200

250

300

350

400

20162017

20182019

2020

224

284 304328

352

DEVELOPMENT PERSPECTIVE IN 2020

21

2020 2019 2018 2017 2016

727 1154 1840 2288 3105Trunkline & Provincial

Pipeline Construction (KM/Y)

6 2 9 4 5 Gas Compressor Stations

729 800 850 790 900New Families Connected to

NG – thousands/y

5 8 18 46 48 No of New Cities/y

2520 2533 2832 3507 3691 No of New villages/y

99 97 97 97 96 %of urban families

90 85 80 75 70 % of rural families

INVESTMENT PERSPECTIVE IN NG Value Chain (Upstream &

Treatment Excluded) : 2016-2020 (Billion US$)

22

0

1

2

3

4

5

6

20162017

20182019

2020

5,65,6

4,6

3,2

2,8