Iran market to grow significantly

The revenue of oil and gas companies declined on the note of unexpected lockdown and deaths. Factors such as the increasing natural gas pipeline capacity and the increasing demand for petroleum products are expected to drive the market during the forecast period. However, the high volatility of crude oil prices is expected to hinder the growth of the Iranian oil and gas market.

Increasing investment in upstream and midstream oil and gas to drive growth

The country has been pushing to increase investments in the oil and natural gas infrastructure over the years. However, the sanctions put in place by the US have caused major disruptions in its plans.

Oil and gas pipelines have become a major source of interest as they provide easier distribution, especially as the country is surrounded by unstable regimes. For instance, in 2021, Iran's state-owned refiner NIORDC signed a €372 million preliminary deal with the privately-owned Bank Mellat to finance the construction of a new 150 000 bpd oil products pipeline to both supply northeast Iran, and possibly also help the flow of products to its eastern neighbours. The near 1000 km pipeline, named Tabesh, is expected to run through the southern and central and end at the Iran-Afghanistan border. Iran expects the completion to be around 2025.

Another major example is in July 2021, with the start of injecting crude into the pipeline and oil shipments from the Jask region on the Gulf of Oman coast. This will start adding conduit officially.

A major upcoming source of revenue for the government is the production of natural gas. The production of natural gas, unlike crude oil, has been increasing rapidly, bucking the trend caused by the pandemic, with around 250.8 billion m³ of natural gas produced in 2020, up from 241.4 billion m³ in 2019. This trend is expected to continue during the forecast period to increased natural gas demand in the international market due to its lower carbon emission property.

Hence, increasing investments in upstream and midstream oil and gas are expected to drive growth in the market.

Key topics covered:

• 1 Introduction
• 2 Research methodology
• 3 Executive summary
• 4 Market overview
• 5 Market segmentation
• 6 Competitive landscape
• 7 Market opportunities and future trends

Companies mentioned

• National Iranian Oil Co.
• Iranol Oil Co.
• National Petrochemical Co.
• Pars Oil Co.
• National Iranian Oil Refining and Distribution Co.

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