Iran Oil and Gas Downstream Market

Iran Oil & Gas Downstream Market Analysis

The Iran Oil and Gas Downstream Market is expected to register a CAGR of greater than 2.07% during the forecast period.

• The Iran oil and gas downstream market forecast is quite optimistic due to the increase in the consumption levels of oil and the expansion of refineries in the country.
• Iran has the potential to become a significant natural gas supplier to its region. It has established agreements with some of its neighboring countries to export natural gas through a planned regional pipeline. It may become an opportunity for a further increase in the oil and gas market.
• As the government of Iran is focusing on increasing the investment in the downstream sector to increase the oil refining, it is expected to be the driving force of growth in the industry.

Iran Oil & Gas Downstream Market Trends

Oil Refining to Witness Growth

• In Iran, the capacity refineries had increased from 1985 thousand barrels daily (kb/d), in 2015, to 2225 kb/d, in 2018. The refinery throughput increased by 5.9% to 2026 kb/d, in 2018 from 1968 kb/d, from 2017 . The increase in oil production is also increasing the growth in the refinery throughput.
• Bidboland Persian Gulf Gas Refinery is under construction with more than USD 3 billion is expected to be invested into the refinery. The plant is expected to operate with a gas processing capacity of around 56 million cubic meters per day and is expected to produce 3.4 million tons of petrochemical feedstock
• Oil consumption increased 2% from 84.5 million tons of oil equivalent (Mtoe), in 2017, to 86.2 Mtoe, in 2018. The slight increase in consumption can be attributed to the economic stagnancy in the country.
• Iran's oil refining capacity is expected to witness slow growth in the forecast period due to the United States sanctions. Increase in oil production in the country, which decreases the cost of transportation, is expected to be one of the drivers of growth in the sector.

Increasing Investment in the Downstream Sector to Drive the Market

• Gas production has been increasing in the country rapidly by 6.9 %, year on year, to 205.9, in 2018 from 157.8, in 2015 due to increase in investment in the upstream sector and production of new gas fields like South Pars field. The country has the second largest reserves of gas in the world, which may be used in the increase of production of petrochemicals.
• In Iran, total crude oil distillation capacity was slightly more than 2.2 million b/d, in 2018. Highest amount of refining capacity coming from Abadan Refinery with a capacity of refining 400 thousand barrels per day.
• Persian Gulf Star Refinery has been expanded in 2019 with the project has to raise the refinery's condensate processing capacity by 40,000 barrels. The refinery's current processing capacity at 400,000 (barrels per day) bpd and is expected to further increase to 540,000 bpd as more investment is expected to be made.
• Hence, increasing investment in the downstream sector is expected to to drive the market and increase the growth in the forecast period.

Iran Oil & Gas Downstream Industry Overview

The Iran oil and gas downstream market is consolidated. The major companies include
National Iranian Gas Company, Pars Oil Company, Iranol Oil Company, National Petrochemical Company, and National Iranian Oil Refining and Distribution Company.

Iran Oil & Gas Downstream Market Leaders