Iranian Gas Prospect H.E S.R.Kassaeizade Deputy Oil Minister and Managing Director of NIGC Presented by Turkey June.2008

Iranian Gas Prospect A Regional Perspective

Overview NIGC Organization 2008 Natural Gas Refineries & Dehydration Units Iran In 2007 NIGC Transmission Systems Pipeline Projects Compressor Stations Plans Underground Gas Storage Projects Gas Treatment Capacity LNG Production Investment on Gas Infrastructure Achievements in 2025 Advantages for Iranian Gas Market

NIGC Organization 2008 Oil Ministry NIOCNIGC 44 Sub Companies 8 Gas Ref. Co. 30 Province Gas Co. UGS Co. Eng & Dev Co..Transmission Co CNG Co. Commercial Co. TMS NIORDCNPC

Fajr Hashemi nejad Ilam South Pars Parsian Sarkhon Masjed Soleyman In OperationPlan Gavarzin Sarajeh Shorijeh Gonbadly Dalan Refinery Dehydration units Natural Gas Refineries & Dehydration Units Bidboland I Caspian Sea Bidboland II South Gasho

Natural Gas Production* ( ) *(Received Natural Gas From NIOC)

Iran’s Share in the World Natural Gas Production (2007) 132 BCM

Domestic Natural Gas Sales ( )

Iran’s Share in the World Natural Gas Consumption (2007) 132 BCM

Iran in 2007 High pressure Gas Transmission pipelines Km Gas Distribution Networks Km No. of Natural Gas Consuming Cities 660 No. of Natural Gas Consuming Rural Areas 5700 Natural Gas Consuming Population 76% Share of Natural Gas in fossil fuels Basket 61% No. of Natural Gas Consuming Industries Export 5.6 BCM Import 6.2 BCM

Top 5 Gas Reserves Russia Iran Saudi Arabia United Arab Emirates Qatar TCM

Natural Gas Sector Breakdown in 2007 BCM(%)

Principle 44 of I.R.of Iran Constitution All oil and Gas related activities except for Oil Industry Upstream will be privatized and offered to private sector. Principle 44 concerns with privatization of the natural gas market and thus formation of a financially stable and transparent markets, so as to ensure supply of good-quality natural gas at competitive prices to consumers. Iranian gas market will be opened to foreign investors as well.

NIGC Transmission Systems (Under Implementation) IGAT- V IGAT- VI IGAT- VII IGAT- VIII IGAT- IX IGAT- X IGAT- III Last segment (Saveh-Qazvin-Rasht) North-Northeast Pipeline Northwest Pipeline

IGAT 5 Length 504 km Diameter 56 inches’ Capacity 95 MCM/D Investment 2000 millions USD Compressor St. 5 Commencement date 2008

IGAT 6 Length 510 km Diameter 56 inches’ Capacity 95 MCM/D Investment 900 millions USD Compressor St. 5 Commencement date 2008

IGAT 7 Length 902 km Diameter 56 inches Capacity 110 MMCM/D Investment 2 billions USD Compressor St. 2 Commencement date 2009

IGAT 8 Length 1050 km Diameter 56 inches’ Capacity 100 MCM/D Investment 3.3 billions USD Compressor St. 10 Commencement date 2009

IGAT 9 Length 1860 km Diameter 56 inches’ Capacity 110 MMCM/D Investment 8 billions USD Compressor St. 17 Commencement date 2014

IGAT 10 Length 824 km Diameter 56 inches’ Capacity 65 MMCM/D Investment 635 millions USD Compressor St. 4 Commencement date 2009

(IGAT III)Last segment (Saveh-Qazvin-Rasht) Length 237 km Diameter 56 inches’ Investment 500 millions USD Source of gas South Pars Commencement date 2009

North-Northeast Pipeline Length km Diameter 48,42 inches’ Investment 1.5 billions USD Compressor St. 6 Commencement date 2009

Northwest Pipeline Length 280 km,190 km Diameter 48,40 inches’ Investment 750 millions USD Compressor St. 3 Commencement date 2008

Pipeline Projects ( ) Total (2025) 7 th Plan6 th Plan5 th plan4 th PlanFacilities -15,1613,149,10,11,124,6,7,8,9 Major Pipelines to 56 inches Pipelines (km) Other Pipelines (km) Total Length (km)

Compressor Stations Plans ( ) Total (2025) 7 th Plan6 th Plan5 th plan4 th PlanFacilities Compressor Stations (NO.)

Underground Gas Storage Projects  No. of Storages 3  Operating capacity 60 MMSCMD (3 Months)  Investment USD 560 Million

Gas Treatment Capacity (Under Implementation) Refinery Capacity(MMSCMD) Commencement date  Bidboland-II  Ilam (Expansion)  South Pars (Phases 6,7,8)  South Pars (Phases 9,10)  South Pars (Phases15,16,17,18)  South Pars (Phases 19,20,21)  South Pars (Phases 22,23,24)

LNG Production Projects Capacity (mt/y) Commencement date Iran LNG Pars LNG Persian LNG

Investment in 2007 Plans and Projects under implementation (Downstream) (28 Billions USD)

Investment on Gas Infrastructure ( ) (Downstream) Total (2025) 7 th Plan6 th Plan5 th plan4 th PlanSection Distribution Transmission (Pipelines,Compressor stations) Refinery & Underground Storage Staff TOTAL (1000 Billion Rials( TOTAL (USD Billions( 1000 billions Rls

Achievements in 2025 The second natural gas producer in the world 10 percent share in global natural gas trade, through pipeline or by LNG Domestic pricing deregulation on the track Natural gas, dominant energy as feed stock and fuel Privatization based on principle 44 of constitution completely achieved