Alongside several mini-LNG plant projects, mainly meant to meet domestic need for gas in remote areas, Iran expects to bring five LNG projects online in the next three years, including a 10.5-million-metric-ton liquefaction facility which is 60 percent complete.
Iran’s gas exports are limited amid the soaring residential demand which has made the country the world’s fourth biggest gas consumer after the US,Russia and China. This comes despite the fact that Iran has the world’s biggest gas reserves.
Although back in November Iranian Oil Minister Bijan Zangeneh warned that Iran might turn into a net importer of gas in the next few years if consumption is not controlled, the country has been using gas as a cost-effective replacement for much liquid fuel formerly spent in power plants, industrial units, or by cars, giving itself the chance to export the surplus liquid fuels.
What is obvious from international reports on the topic, is that by 2020, anew wave of surplus LNG will hit the market, further plunging the prices. Even at the time being there are countries which claim that LNG production is not financially justified for them. Not only that, but LNG prices are low and are expected to remain so for some time. Thus, Iran turning into an LNG gas exporter becomes a stretch. However, Iran’s mini-LNG factories meant to increase the domestic reach of gas in the country denote a wise policy in the face of current situation.
Energy demand outlook by region
At 0.5 percent p.a., it has been said, the increase in energy consumption across the EU27 over the next 25 years will be very low in comparison to other parts of the world (which said to be + 1.6 percent). Investment in the new energy efficiency measures as well as climate change commitments by the EU, will bring about a significant 34-percent improvement of energy efficiency in the EU27.