The reduction in natural gas supply to petrochemical plants, which commenced last month to provide the household sector with enough gas, is continuing and this restriction has led to a 30% decline in the production of petrochemicals, the secretary-general of the Association of Petrochemical Employers Unions said.
“All petrochemical plants that use natural gas as feedstock have reduced their production and are operating at 70% of their capacity,” Mehr News Agency also quoted Ahmad Mahdavi-Abhari as saying.
According to reports, between 30% and 70% of gas supply restrictions have been imposed on major industries compared to the summer when they were fully provided by gas.
In addition to the petrochemical industry, gas supply to steel industries and cement factories has decreased by 50% and 70% respectively compared with the summer.
Normally, 65% of the gas produced in Iran is allocated to the domestic sector, which is currently at 600 million cubic meters per day and is expected to reach 700 mcm/d due to the drop in temperature in the coming weeks.
The priority of the National Iranian Gas Company is providing gas for the household and commercial sectors. Before the start of the cold season, the Oil Ministry took measures to allocate alternative fuel to the industries so that when the consumption of the households increases and less gas is delivered to the industrial sector and power plants, they can use other fuels such as diesel and mazut.
Cement factories were among the first producers whose gas supply was cut, after gas consumption soared late in fall.
Most manufacturers have started to tap into liquid fuel in order to continue their operations.
According to reports, the Oil Ministry compensates the cement producers’ financial loss through discounts in liquid fuel bills.
Advantages of cuts in gas delivery notwithstanding, the policy can exacerbate the air pollution crisis in and around mega cities, as most cement factories continue production by using dirty fuel like mazut, one of the most polluting feedstock in the world.
Domestic gas consumption rises in the cold seasons and subscribers turn on heating devices that run mostly on gas.
Iran offers natural gas to households and businesses at highly subsidized rates, which experts blame for the illogically high level of gas consumption in the country.
NIGC has the capacity to pump nearly 1 billion cubic meters of gas per day to the national network.
The government has devised plans to ensure power plants in Iran have access to adequate supplies of diesel and mazut over the winter to prevent any electricity outage in the country.
