In recent days, the Iranian regime’s president, Ebrahim Raisi, has been making a lot of fanfare about opening the “South Pars” gas field in southwest Iran. But a closer look shows that, like his other hollow promises and endless lies, Raisi is making much ado about nothing.
South Pars, celebrated as the world’s largest gas field, stands as a shared treasure between Iran and Qatar. For several years, extracting from this gas field has been a source of dispute between Iran’s regime and Qatar.
During a visit to the Bushehr province, state media recently reported the inauguration of Phase 11 of South Pars. However, the peculiar choice of venue – a sports hall – is quite telling of this so-called “achievement.”
At the event, Raisi’s Oil Minister, Javad Oji, claimed that through Phase 11’s development plan, gas production from this joint reservoir would initially reach 15 million cubic meters per day, with the potential for future expansion to 56 million cubic meters.
Raisi’s government envisions an annual income of $5 billion through the launch of Phase 11. This seems more of a promotional tale, dependent on a future where Iran’s gas exports escape sanctions and the phase’s development is completed – both far from reality.
Even if sanctions are lifted, Tehran faces a core challenge in exporting these substantial gas volumes: the deterioration of its production infrastructure, particularly in the oil and gas sector. Over the past four decades, the regime in Tehran has vigorously pursued resource accumulation to fuel its warmongering outside Iran and repression inside the country.
Oji’s remarks during the inauguration reveal minimal gas extraction in this phase, making the event at the sports hall appear more of a publicity stunt for the current administration.
#Iran's state officials and some western media outlets are reporting a surge in the regime's #oil sales. How much of this is true and what are the consequences? Find out:https://t.co/B1cUFG5ugf
— NCRI-FAC (@iran_policy) August 26, 2023
The Saga of South Pars Gas Field Development
The development of Phase 11 of South Pars was entrusted to the Revolutionary Guards during the second term of Mahmoud Ahmadinejad. It is worth noting that IRGC dominates Iran’s oil and gas sector officially or unofficially through its front “private” companies.
According to reports from government-affiliated media and the Ministry of Oil, Iranian authorities recklessly squandered a staggering $6 billion worth of gas in a single year.
The Fars news agency published a report in 2020 based on the financial statement of the South Pars gas complex. It acknowledged that export restrictions on LPG (liquefied petroleum gas) and the filling of storage tanks from November 2018 to March 2019 resulted in the wastage of 3 million tons of liquefied gas produced by six gas refineries, the third-largest source of Iran’s export income after oil and petrochemical products.
The regime’s engineered statistics from 2018 indicate that the average export price of Iranian liquefied gas exceeded $500 per ton. In the same year, Iran exported petroleum gases worth $5.3 billion.
The result: the waste of 3 million tons of liquefied gas in 2018 translated into a loss of $1.5 billion for Iran. Regrettably, this is just a fragment of the energy resources squandered by the regime.
While the ruling theocracy recklessly depletes the nation’s resources, Qatar’s earnings from this shared gas field have reached a staggering $105 billion up to 2021. In stark contrast, the regime’s income from this venture was a mere $12 billion, funds that Tehran predominantly channeled towards supporting acts of terrorism and waging wars.
Qatar’s share of extraction from this gas field represents approximately 90% of the total yield, effectively leveraging the field to its advantage nearly nine times more than Iran.
It’s crucial to note that Phase 11, alongside Phase 12, commenced nearly two decades ago in 2000. However, a 23-year delay in its launch has only meant increased losses for Iran and heightened profits for Qatar, given that this phase constitutes the final and most critical section of the shared gas field between the two nations.
The meager earnings from this vital gas field are poised to be tragically squandered by the Iranian regime. At a time when hyperinflation and soaring unemployment plague the nation, Iranian citizens are left struggling to make ends meet. The regime’s relentless pursuit of its malign activities and its disregard for the dire economic plight of people paint a stark picture of its priorities. While the citizens bear the brunt of economic hardship, the regime’s mismanagement and misplaced focus on its illicit endeavors continue to erode the prosperity of the Iranian nation.
