Iran discovers gas reserves

Iran sits on top of the world's second-largest gas reserves after Russia.

Iran has discovered new reserves of gas totalling 11.4 billion cubic feet of gas in-place, of which 8.5 billion can be exploited, the country's oil minister was quoted as saying on Thursday.

Kazem Vaziri-Hamaneh told reporters the discovery was made in the last few days in the Fars province, adding the gas would be used for domestic needs. He did not say when production could start.

Iran sits on top of the world's second-largest gas reserves after Russia but sanctions, politics and construction delays have slowed its gas development and analysts say it is unlikely to become a major exporter for a decade.

"These reserves have been discovered in central Iran," Vaziri-Hamaneh said, according to Mehr News Agency. "If we dig 17 wells we can exploit 30 million cubic feet of gas per day."