TEHRAN- The consultative meeting on the importance of sustainable natural gas supply in the cold season, the challenges facing the energy sector, and their effects on the country’s economic and industrial activities was held on Tuesday, with the participation of Hamid Bovard, Acting Oil Minister; Saeed Tavakoli, CEO of the National Iranian Gas Company; Mohammad Sadegh Azimifar, CEO of the National Iranian Oil Refining and Distribution Company; and the president and board members of the Tehran Chamber of Commerce, Industries, Mines and Agriculture.
According to SHANA, the meeting focused on how the private sector can help resolve energy-sector challenges, manage demand, strengthen gas supply, and participate in decision-making and regulation.
The Oil Ministry’s caretaker welcomed the role of specialized associations and private-sector actors in reviewing policies, drafting future energy plans, and strengthening the country’s energy diplomacy. He stressed that private-sector participation is necessary not only in implementation but also in decision-making, vision-building, and drafting regulatory frameworks. He also called for cooperation in strengthening interaction and advancing national goals in energy diplomacy.
Bovard invited private-sector actors to present operational plans in energy consumption management, including software and innovative solutions, and said any proposal for direct use of grid gas in productive and economic projects would be welcomed by the Ministry of Oil. He emphasized that industries should participate through proper planning to reduce fuel consumption, because maintaining the country’s energy sustainability requires cooperation from all sectors. He stated that current conditions are not normal and that energy issues cannot be approached with the usual past perspective. Therefore, all pillars of the country must cooperate to manage consumption, increase reserves, and ensure sustainable energy supply.
He also said the Ministry of Oil is pursuing necessary measures around the clock to restore lost gas production capacity so that the country can return to its previous production level as quickly as possible. Compensating for lost capacity requires effort and cooperation from all sectors, and alongside measures within the Ministry of Oil, the cooperation of other bodies, industries, and the private sector is essential to pass through the current conditions. He referred to the need to correct some past decisions in energy management and said all available capacities must be used to reduce consumption, with numerous programs for consumption management and maintaining favorable fuel storage conditions placed on the agenda.
Emphasizing readiness for the cold season, he said owners of major industries, especially in the steel sector and energy-intensive industries, are expected to participate in implementing saving projects and use their capacities to reduce consumption.
The CEO of the National Iranian Gas Company, Saeed Tavakoli, emphasized the private sector’s capacity in developing gas trade and said private companies can help diversify supply sources by entering the field of gas imports from neighboring countries. The National Iranian Gas Company is ready to support these companies and issue the necessary permits within relevant rules and mechanisms. He invited private-sector actors to participate in optimization and gas trade projects and said there are suitable legal and economic capacities for the activity of ESCOs and the development of gas imports. These opportunities must be used with the participation of qualified entities and investors to strengthen energy security and the sustainability of the country’s gas supply.
Regarding the latest status of gas production and supply, Tavakoli said that before these incidents, during the cold days of the year, the country faced a daily gas imbalance of 250 to 300 million cubic meters. However, during enemy attacks, 230 million cubic meters of the country’s gas production capacity was lost. Immediately after the incident, integrated management meetings were held at the Ministry of Oil to restore damaged capacities. With the round-the-clock efforts of colleagues, about 40 percent of the lost capacity has so far returned to operation, and part of the gas condensate production capacity has also been restored. He noted that about 130 million cubic meters of the lost capacity remains out of operation due to damage to equipment and upstream points of the refining process, and restoring it requires time and specialized equipment. Despite the extent of the damage, the stability of the country’s gas network was maintained, and even in the first hours after the attack, the country’s gas network did not face widespread disruption. This showed the effort and coordination of all actors in the gas supply chain, from upstream to downstream.
He also referred to damage to gas network facilities during the third imposed war, especially at pressure reduction stations and gas distribution facilities, and said the gas network remained stable in various regions, with emergency measures taken in cases such as Marivan and Kamyaran to stabilize the network. Despite a reduction of 130 million cubic meters in production capacity, no restrictions have so far been imposed on gas supply to the country’s industrial and production units, an achievement resulting from integrated energy management and cooperation among responsible bodies.
Tavakoli emphasized the need to manage consumption and prioritize gas uses in the coming winter. He said this year presents exceptional conditions in energy supply, and all bodies and stakeholders need to plan to pass the winter with a realistic view based on figures and data. Referring to the approximately 73 percent share of gas in the country’s energy mix, he stated that the extensive dependence of various sectors—from industries and power plants to the residential sector and remote areas—has doubled the need to pay attention to network stability. Contrary to public perception, the stability of the gas network is not a fixed issue and is continuously affected by changes in production conditions, consumption, and air temperature. If the cold conditions of 1403 are repeated and long cold spells continue, gas consumption in the residential and commercial sectors could exceed 600 million cubic meters per day. Therefore, planning must begin now for consumption management and maintaining fuel reserves.
He referred to measures taken to develop energy service companies and said implementation of the legal capacities of Article 46 of the Seventh Development Plan Law and the Cabinet resolution in 1404 has provided a suitable opportunity for the private sector to enter consumption optimization and help stabilize gas supply to industries. He also considered the revision of gas tariffs after 14 years to be among other measures. A review of energy intensity in Iran shows that, unlike many countries, energy consumption in the country has followed an upward trend over the past two decades. An important part of this issue is due to the aging of heating and cooling equipment and non-compliance with building optimization standards. He emphasized that high energy consumption is not limited to high-income deciles. In many buildings lacking proper insulation and up-to-date equipment, especially in middle- and lower-income deciles, energy intensity is high, and action must be taken to reduce consumption by upgrading equipment and improving building standards. Referring to the initial results of implementing gas consumption optimization projects, he said that in one project implemented in Isfahan Province, by replacing new technology in brick kilns, gas consumption per ton of brick produced fell from about 300 cubic meters to 27.4 cubic meters. In the livestock and poultry sectors, there are also significant capacities for reducing consumption, and energy service companies can, by upgrading equipment and optimizing processes, both reduce gas consumption and strengthen production stability.
He also referred to measures taken to supply alternative fuel in some areas and said that in Golestan and Mazandaran provinces, the use of secondary fuel has been made possible for some bakeries so that their production and services are not halted in the event of possible gas restrictions.
The president of the Tehran Chamber of Commerce, Mahmoud Najafi Arab, emphasized the need to use the private sector’s capacity in managing energy imbalance and called for the expansion of fuel storage, gas supply, and private-sector participation in the development of oil fields. He said the private sector is ready to cooperate with the Ministry of Oil in consumption management, energy supply, and overcoming upcoming crises. Emphasizing the need to manage energy consumption, he added that the capacity of private-sector associations should be used to offer solutions such as optimizing the consumption of gas heaters and managing residential consumption. Of course, implementation of these programs must be designed in a way that also takes into account the private sector’s economic interests, because without economic justification, it is not possible to continue and effectively implement the projects.
He referred to the need to manage energy consumption in commercial and retail centers and said consumption patterns and operating hours of commercial centers should also be reviewed, and the experience of other countries should be used.
Najafi Arab noted that the residential sector accounts for the largest share of gas consumption and emphasized the need for serious attention to reforming the consumption pattern in this sector. To pass through the current conditions, the issue of using alternative fuel must be pursued in cooperation with responsible bodies. Also, companies and industrial units must begin completing their liquid fuel reserves now and should not postpone fuel supply until a crisis occurs.
He emphasized the need to examine solutions for gas imports and said joint meetings between the Ministry of Oil and the private sector should be held to examine the possibility of gas imports or the use of other energy supply capacities so that the country faces the least amount of cuts in the cold season. Referring to the importance of sustainable energy supply in the north of the country, he added that Mazandaran, Golestan, and Gilan provinces play an important role in supplying protein products; therefore, sustainable energy supply to these regions must be seriously considered in planning. Najafi Arab also referred to the capacity for private-sector participation in the development of oil and gas fields and stated that the ground must be prepared for the effective presence of the private sector in development and exploitation projects of the fields. In this regard, it is necessary to examine and remove barriers to competition and the participation of private and state companies in tenders so that the investment capacity and technical capability of the private sector can be used in line with national interests.
At the meeting, some members of the Tehran Chamber of Commerce also presented their views on private-sector cooperation with the oil industry, demand management in the energy sector, fuel supply to certain businesses including Snap and Tapsi, and the need to develop the CNG industry.
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