The South Pars natural gas complex is Iran’s energy lifeline

Israel Strikes Iran’s Vital South Pars Gas Complex for Second Time

Israel has launched a second attack on Iran’s South Pars natural gas field and its associated petrochemical complex, targeting a critical energy resource that serves as both a domestic necessity and a key source of export revenue for Tehran.

Israeli Defense Minister Israel Katz confirmed Monday that Israel struck a major petrochemical facility at Asaluyeh, the onshore industrial component of the gas field located beneath the Persian Gulf. Katz described it as a “powerful strike” against “the largest petrochemical facility in Iran…responsible for about 50% of the country’s petrochemical production.” He added that with this latest strike, combined with an earlier attack, facilities responsible for approximately 85% of Iran’s petrochemical exports have been knocked out of operation.

The significance of South Pars as a target cannot be overstated. A previous Israeli attack on March 18 prompted Iran to retaliate by targeting energy infrastructure in other Middle Eastern countries, escalating regional tensions. Following that incident, U.S. President Donald Trump stated Israel would not attack South Pars again but warned on social media that if Iran continued attacking critical energy infrastructure in Qatar, the United States would respond by “massively blow[ing] up the entirety” of the field.

South Pars represents Iran’s primary domestic energy source in a country that frequently struggles with electricity production. The gas field, which Iran shares with Qatar (where it’s known as the North Field), is the world’s largest. According to the Center on Global Energy Policy at Columbia University, Iran ranks as the fourth-largest consumer of natural gas globally, behind only the United States, China, and Russia, despite having a much smaller economy. Unlike many Middle Eastern nations, Iran relies heavily on gas for heating due to its colder climate, with much of this consumption being subsidized by the government.

Beyond domestic use, the South Pars petrochemical complex provides crucial export earnings. The gas serves as raw material for producing chemical building blocks like ethylene, propylene, methanol, ammonia, and urea, which are used in manufacturing products ranging from plastic pipes and packaging to clothing, household items, and fertilizer. Turkey, China, India, and Southeast Asian countries represent the largest importers of these products, according to Iranian mining and petrochemical export company Irminex. The industry benefits from competitive advantages due to low raw material costs from South Pars gas.

Israeli Prime Minister Benjamin Netanyahu claimed the attack targeted Iran’s financial resources, stating: “Today we destroyed the largest petrochemical plant in Iran. In other words, we are systematically destroying the money machine of the Revolutionary Guards.”

The attack comes at a particularly vulnerable time for Iran’s energy sector. Despite possessing vast energy reserves on paper, the country has experienced recurring power shortages due to disruptions in gas supplies. Just this past July, a severe heat wave strained the power grid to the point that public buildings had to shut down. Consequently, strikes against South Pars potentially impact both civilian welfare and the country’s export revenues.

The contrast between how Iran and Qatar have developed their portions of the same gas field is striking. Qatar, with just 3 million residents, invested billions in developing liquefied natural gas (LNG) export capabilities, becoming the supplier of approximately one-fifth of global LNG before recent conflicts forced it to shut down operations at its Ras Laffan facility.

Iran, home to 93 million people, has faced a different path. International sanctions and investment shortfalls have prevented the development of LNG export terminals. Instead, Iran primarily channels its gas into domestic pipelines for cooking, heating, electricity generation, and industrial use. Iran exports relatively little gas—about 9 billion cubic meters compared to Qatar’s more than 120 billion cubic meters. As a result, the South Pars petrochemical industries represent one of the few ways Iran can generate export income from its massive gas reserves.

Iran previously planned three LNG export projects along its Persian Gulf coastline, including partnerships with Total Energies and Shell. However, sanctions related to its nuclear program blocked these projects by preventing the import of necessary technology and investment. A third site at Asulayeh reportedly nears completion after nearly two decades of construction.