An aerial view of Qatar’s Ras Laffan Oil Refinery, which is directly connected to the North Field. Qatar has become a strong LNG player behind the United States. (Shutterstock/PaPicasso)

How the South Pars North Field Basin Is Driving LNG Geopolitics

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The North Field–South Pars basin holds immense reserves, yet LNG power today depends on contract design, not untapped potential.

Beneath the waters of the Persian Gulf lies the world’s largest non-associated natural gas reservoir, known as North Field on the Qatari side and South Pars on the Iranian side. The same geological structure under the same sea contains the same gas reservoir shared by two countries. One has placed this reserve at the center of the global liquefied natural gas (LNG) system. The other has yet to fully transform its potential into economic power. 

The same rock, the same pressure, the same gas. But not the same outcome. Why? Because this is a non-associated gas field. In other words, it is not linked to oil production. Gas is not produced as a byproduct of oil; gas itself is the primary product. 

This technical detail may seem minor, but in fact, it creates a major strategic difference. Production in such fields does not fluctuate according to oil prices. Gas supply can be planned directly according to demand. It provides an ideal foundation for long-term LNG contracts. 

The Differences Between Qatar and Iran in the South Pars North Field Basin

Qatar did exactly that. It combined the production stability provided by the reservoir with a long-term contract architecture. It was able to sign 27-year agreements with China because there was geological confidence behind it. For an LNG investor, the most critical question is this: Can this field produce uninterrupted volumes for 20 to 30 years? North Field’s answer was clear.

On the Iranian side, however, the picture is more complex. The geological advantage is the same, and South Pars is the continuation of the same reservoir. Yet due to sanctions, difficulties in accessing finance, the inability to establish LNG infrastructure, and restrictions on technology transfer, this potential has not been transformed into global LNG capacity. 

The gas exists, but access to the global market is limited. The reserve is large, but there is no liquidity. For this reason, the two countries draw from the same........

© The National Interest