Iran natural gas discovery and collection efforts

Iran has reported significant developments in its natural gas sector, involving both new resource discoveries and improvements in gas collection infrastructure.

In late August 2026, officials announced the discovery of the Takht-e gas field in Fars province. The field is described as containing over 7.5 trillion cubic feet of “sweet gas” with low sulfur content, which may lower development costs. While the discovery includes valuable gas condensates, the government faces challenges in development due to international sanctions and the need for approximately $19 billion in annual investment to expand infrastructure and meet production goals.

Concurrently, the Ministry of Petroleum has reported progress in reducing gas flaring. Daily collection of associated petroleum gas has increased from 7 million cubic meters to over 16 million cubic meters through technical projects such as pressure boosting and pipeline transfers. To encourage private sector involvement, the government has signed 23 new contracts and implemented a policy allowing the private sector to receive associated gas at a base rate of zero. The ministry aims to reintegrate nearly 90 percent of flared gas into the economy by the end of the Persian calendar year 1406.