Iran faces challenges in gas production

LONDON, Nov. 9 (UPI) -- Political obstacles and foreign investments are among the many obstacles preventing Iran from doubling its gas production capacity, an analysis says.

Iran announced recent plans to double its gas production from around 17 billion to 35 billion cubic feet of natural gas per day by 2014.

The gas-rich country in October said it was spending $200 billion to upgrade refineries and build pipelines as Washington considered expanded sanctions as punishment for a controversial nuclear program.

Despite vast resources and growing ambition, Tehran needs to find the international financial backing to move forward, analysts at London-based MEED, the Middle East business outlet, report.

Meanwhile, Iranian lawmakers in October moved on a bill that would increase gas prices by 75 percent of export prices by 2015, though the measure is expected to be met with public criticism.

Iran sits on an estimated 948 trillion cubic feet of natural gas, placing it second in the world behind Russia in terms of proven reserves.

The likelihood that Iran could double its production, however, is "marginal at best," because of its many challenges, the report says.