Besides oil, the Persian Gulf region also is important because it contains huge reserves (2,462 Tcf) of natural gas, with Iran, Qatar, Saudi Arabia, and the United Arab Emirates holding the worlds second, third, fourth, and fifth-largest reserves (behind Russia), respectively. This likely will become increasingly important in coming years, as both domestic gas consumption and gas exports (by pipeline and also by liquefied natural gas -- LNG -- tanker) increase.
Most of Saudi Arabias currently proven natural gas reserves consist of associated gas, including the offshore Safaniya and Zuluf field. A huge (13-Tcf) natural gas field, called Dorra, is located offshore near the Khafji oil field in the Saudi-Kuwaiti Neutral Zone and may be developed by Japans AOC. Dorra development is controversial, however, because part of it is also claimed by Iran (which calls the field Arash). The maritime border between Kuwait and Iran remain undemarcated, but Saudi Arabia reached an agreement with Kuwait in July 2000 to share Dorra equally. Currently, Iran is resisting any moves by Kuwait and Saudi Arabia to develop the field on their own. Iran and Kuwait have been discussing their offshore boundary since 2000.
Most of Qatars natural gas proven reserves of 509 trillion cubic feet (Tcf) are located in the offshore North Field, which is the largest known non-associated natural gas field in the world. Smaller associated gas reserves also are contained in the Id al-Shargi, Maydan Mahzam, Bul Hanine, and al-Rayyan offshore oil fields. The Qatari government believes that the countrys economic future lies in developing this vast natural gas potential. One proposed project will tie Qatar into the United Arab Emirates (UAE) Dolphin Project, an integrated natural gas pipeline grid for Qatar, UAE, and Oman, with a possible subsea connection linking Oman to Pakistan.
Irans largest non-associated natural gas field is South Pars, geologically an extension of Qatars North Field. Current estimates are that South Pars contains 280 Tcf or more (some estimates go as high as 500 Tcf) of natural gas, of which a large fraction will be recoverable, and over 17 billion barrels of liquids. Development of South Pars is Irans largest energy project, already having attracted around $15 billion in investment. Natural gas from South Pars largely is slated to be shipped north via the planned 56-inch, 300-mile, $500 million, IGAT-3 pipeline, as well as planned IGAT-4 and IGAT-5 lines. Gas also will be reinjected to boost oil output at the mature Agha Jari oil field, and possibly the Ahwaz and Mansouri fields. Besides condensate production and reinjection/enhanced oil recovery, South Pars natural gas also is intended for export, by pipeline and also possibly by liquefied natural gas (LNG) tanker. Sales from South Pars could earn Iran as much as $11 billion per year over 30 years, according to Irans Oil Ministry.