Iran announces 7.5 trillion cubic foot natural gas discovery in Fars province
Petroleum Minister Mohsen Paknejad confirmed a 7.5 trillion cubic foot gas find in southern Iran, estimating that 73% of the reserve is recoverable despite ongoing war damage to nearby South Pars infrastructure.
Gas deposit discovered in Fars province
Iran announced on 23 August 2026 the discovery of a gas deposit holding 7.5 trillion cubic feet (21 billion cubic meters) in the southern province of Fars. Petroleum Minister Mohsen Paknejad stated through official news agency Shana and state broadcaster IRIB that 5.7 trillion cubic feet, or approximately 73% of the discovered volume, is recoverable. According to ministry calculations, this recoverable volume equals 15 years of production from the first phase of the offshore South Pars field, the world's largest natural gas deposit shared with Qatar in the Persian Gulf. Paknejad confirmed that the reservoir also holds an additional deposit of gas condensate that could generate billions of dollars in revenue for the state.
This discovery adds a significant amount of hydrocarbons to Iran's national reserves and reflects the petroleum industry's efforts to identify and exploit new resources.
Strike damage on South Pars facilities
The find follows direct military engagements that have damaged Iranian energy assets since 28 February 2026. Erfan Afazali, secretary general of the Iranian Petroleum Industry Federation, stated that joint United States and Israeli strikes knocked out approximately one-third of the operational gas capacity at the South Pars field. Israeli forces attacked the offshore field twice, prompting Iranian retaliatory strikes against energy installations belonging to neighbouring Persian Gulf states. Prior to the February attacks, Iran produced roughly 650 million cubic meters of gas daily, or about 8.4 trillion cubic feet per year. War damage cut daily production by 230 million cubic meters, leading Iranian authorities to schedule a recovery of 100 million cubic meters per day in the months following July.
- Pre-conflict daily output
- 650 million m³/day
- Output lost to strikes
- 230 million m³/day
- Targeted recovery capacity
- 100 million m³/day
Tightening sanctions and economic measures
The discovery coincides with expanding United States trade restrictions targeting Tehran's hydrocarbon exports and financial channels. United States President Donald Trump announced what he termed an economic D-Day against Iran, designed to bring an end to the armed conflict and enforce the reopening of the Strait of Hormuz. United States Treasury Secretary Scott Bessent warned foreign governments that any state offering vital economic aid to Tehran will face financial retaliation. Iranian President Masoud Pezeshkian acknowledged in a state television broadcast on 23 August that the population faces numerous economic difficulties under the renewed pressure.
- US and Israeli military offensive begins, targeting South Pars infrastructure
- Iranian officials announce plans to restore 100 million cubic meters of daily gas capacity
- Oil Minister Mohsen Paknejad announces 7.5 trillion cubic foot gas discovery in Fars
Chronic shortages and production bottlenecks
Iran holds the world's second-largest natural gas reserves at 33.6 trillion cubic meters and the third-largest oil reserves, but international sanctions and lack of capital investment hinder resource development. The state faces persistent electricity blackouts during both summer and winter peak demand periods and continues to import gasoline to cover domestic transport requirements. Energy officials warn that the combination of international export barriers and physical capacity losses at South Pars threatens severe domestic fuel shortages during the upcoming cold season.
