World's 4th Largest Gas Network in Iran
One can argue that 95% of Iran's gas reserves lie in the southern parts of the country. Therefore, over recent decades gas supply to the northern parts of the country has required the construction of high-pressure pipelines. According to experts every year the length of low and high-pressure pipelines grows by around 10% as the country's gas output rises and gas supply networks in villages and cities expand.
National Iranian Gas Company (NIGC) recently moved to expand its network in southeast Iran and the city of Zahedan with a length of 262 kilometers. Iran has currently more than 37,000 kilometers of gas pipeline and 78 pressure booster stations. Every year, 2,500 kilometers of high-pressure pipeline for gas delivery and seven to eight gas pressure booster stations are built in Iran.
Today energy is a key issue in global economy. Therefore, countries with a higher share of production, transmission and distribution will have more to say with regard to economy and employment. Meantime, one-third of total gas produced in the world (1,000 bcm) is traded between countries and more than two-thirds (68%) is transferred via pipeline and the remaining one-third carried to farther spots in the form of liquefied natural gas (LNG) on special ships.
Building long gas pipelines in the world indicates the significance of pipes for the transfer of gas in the world. Laying out pipelines for the delivery of gas is currently a good option for transferring this energy commodity across the world.
So far more than 1.535 million kilometers of pipeline has been launched in the world to carry 3,276 mcm/d of gas. Iran has a share of around 37,000 kilometers in this network. Therefore, Iran stands in the fourth position in terms of gas supply network. Iran comes fourth just behind the United States, Russia and Canada.
A major policy pursued in Iran is a more active role for the private sector in projects related to development, maintenance and steering of new gas pipelines. The growth of downstream gas sector is estimated at 1 to 1.5% in the world. But natural gas transmission has seen an annual 10% growth rate in Iran in recent years. It indicates the jump in this industry in the country. Up to 2025, Iran's gas transmission network is expected to expand to around 7,000 kilometers with the number of gas pressure booster stations estimated to reach 140.
By the end of Iran's 7th Five-Year Development Plan in 2025, high-pressure gas transmission lines will increase from the current 37,000 km to more than 64,000 km. According to projections, the number of pressure booster stations will also rise from the current 67 to 150. That will place Iran among the countries with extended gas transmission networks in the world.
Gas development in Iran has a decade-old history, but gas supply to cities and villages gathered momentum in 1986. Currently 88% of households in Iran are connected to natural gas. Gas consumption in Iran currently stands at 700 mcm/d, which is equivalent to 4.5 million barrels of oil products. Natural gas also makes up around 70% of the country's fuel mix, which is the highest share among other sources of energy. Natural gas is the strategic pivot for economic development in the country. Last calendar year to March 2016, more than 158 bcm of natural gas was produced, transmitted and distributed all across the country. During the first three quarters of last calendar year, 143 bcm of gas was transmitted across the country. This year, this figure has been up 12% year-on-year.
Megaprojects in High-Pressure Gas Pipelines
Despite having more than 37,000 kilometers of high-pressure gas pipeline, Iran is determined to launch new projects in coming years in a bid to preserve its fourth position in gas supply in the world.
A case in point is Iran Gas Trunkline 6 (IGAT-6) stretching from Assaluyeh to Bidboland and Ahvaz. The 625-kilometer-long pipeline has a capacity to carry 95 mcm/d of natural gas. The $1.1bn pipeline is fitted with five gas pressure booster stations. It is one of the most important high-pressure pipeline projects in Iran.
Other projects are as follows:
IGAT-7 (under construction): stretching from Assaluyeh to Sarkhoun and Iranshahr. It measures 902 kilometers long with a capacity of transferring 110 mcm/d of gas. The $2.2 bn pipeline is fitted with 10 gas pressure booster stations.
IGAT-8 (under construction): stretching from Assaluyeh to Naein and Tehran. It is 1,050 km long with a capacity of carrying 100 mcm/d of gas. The $3.3 bn project is fitted with 10 gas pressure booster stations.
IGAT-9 (under design): stretching from Assaluyeh to Ahvaz, Dehgolan and Bazargan. It is 1,860 km long with a capacity of carrying 110 mcm/d of gas. The $8bn project is fitted with 117 gas pressure booster stations.
IGAT-10 (soon to become operational): stretching from Kangan to Pahaveh and Tiran. It is 590 kilometers in length with a capacity of transmitting 65 mcm/d of gas. The $635mn project is fitted with four gas pressure booster stations.
IGAT-11: stretching from Assaluyeh to Naein and Mayami. It is 1,320 kilometers in length with a capacity of 110 mcm/d. It is fitted with 12 gas pressure booster stations.
IGAT-2: stretches from northwest of Parachin to Mayami and Sangbast. It is 900 kilometers in length and fitted with six gas pressure booster stations. It is estimated to cost $1.5 billion.
IGAT-3: covers Azarbaijan, Saveh, Hamedan, Bijar and Miandoab. It is 470 kilometers long and is fitted with three gas pressure booster stations. The $800 mn project is expected to become operational.
Iran's gas pipeline network is currently 37,000 kilometers long and is expected to go beyond 64,000 kilometers over a 10-year period. Under the current circumstances, 67 gas pressure booster stations are becoming operational. But by 2025, the number of booster stations is projected to reach 150.