Iran has partially suspended gas production at the South Pars gas field after an Israeli strike triggered a significant fire at the facility’s Phase 14 unit, halting the output of 12 million cubic metres (mcm) of gas per day.
The incident, confirmed by Iran’s Oil Ministry, marks the first direct Israeli attack on Iran’s oil and gas sector and has heightened concerns about a broader regional escalation.
The fire, which broke out on Saturday, was quickly extinguished, but not before it forced the shutdown of one of the four processing units in the Phase 14 section of South Pars.
The South Pars field, located offshore in Iran’s southern Bushehr province, is the world’s largest natural gas reserve and is jointly shared with Qatar, where it is known as the North Field.
South Pars is central to Iran’s energy infrastructure, accounting for the majority of the country’s gas production.
Iran, the world’s third-largest gas producer behind the United States and Russia, produces about 275 billion cubic metres of gas annually — roughly 6.5 per cent of global output.
However, due to international sanctions, nearly all of this gas is consumed domestically, with little available for export.
Qatar continues to export liquefied natural gas (LNG) to Europe and Asia through partnerships with international energy companies such as Exxon and Shell.
The Israeli strike specifically targeted four units within Phase 14, a critical processing area that supports both domestic electricity generation and industrial supply chains.
The temporary loss of 12 mcm per day is significant given Iran’s high domestic demand and the field’s role in stabilising national energy supplies.
The attack on South Pars comes amid heightened military tensions between Iran and Israel, with both sides exchanging strikes on key infrastructure.
Israel’s operation was reportedly in retaliation for Iranian missile attacks on Israeli civilian areas.
The escalation has raised fears of further disruptions to energy supplies from the region, which could impact global fuel prices.
The Israeli strike on South Pars is widely viewed as a turning point, not only for Iran’s energy sector but for the stability of global energy markets.
Jorge Leon, an analyst at Rystad Energy A/S (who previously worked at the OPEC secretariat), noted: “This is probably the most important attack on oil and gas infrastructure since Abqaiq,” — referencing the 2019 strike on Saudi Arabia’s oil facilities.
While Iranian authorities have assured that the fire is under control and production will be restored, the incident underscores the vulnerability of critical energy infrastructure in the region and the potential for further escalation to disrupt global supply chains.
