The state-run National Iranian Gas Company injected close to 256 billion cubic meters of gas into the Iran Gas Trunkline (IGAT) in the last fiscal year that ended on March 20, 2022, the head of NIGC Dispatching Department said.
“Of the total output, 238 bcm were consumed domestically and the rest was either exported to Iraq and Turkey, or stored in Sarajeh and Shourijeh storage facilities in Qom and Khorasan provinces or injected into oil wells,” Mohammad Reza Joulaei was also quoted as saying by ILNA.
Domestic consumption in 2021 increased by 5 bcm compared to a year ago, he added.
Giving a breakdown, Joulaei noted that of the total use, households and the commercial sector accounted for the major share of consumption at 122 bcm during the one-year period, indicating no change compared to 2020.
“Gas consumption in industries, namely petrochemical and cement factories, reached 45 bcm,” he added.
According to the official, gas delivery to thermal power stations reached 71 bcm in the 12-month period.
Power plants received close to 180 million cubic meters of gas in 2020 per day, whereas the figure increased to 195 mcm/d in 2021.
Regarding exports, the NIGC official noted that 15 bcm were sold to Iraq and Turkey in 2021, while neighboring Armenia and Azerbaijan also buy gas from Iran via swap deals.
“NIGC produces upwards of 950 million cubic meters a day that is mostly used to meet domestic demand,” he said.
Foreign Currency Revenue
Supplying gas to power plants, instead of liquefied fuels such as diesel and mazut, has not only curbed air pollution but also increased foreign currency revenue.
According to Joulaei, air pollution has posed a challenge in the cold season for more than a decade, as consumption of diesel and mazut increases in power plants, hence the government has started substituting liquefied fuels with natural gas in the power plants.
Iran has abundant natural gas deposits and it is more cost-effective to use gas for power generation instead of liquid fuels.
NIGC has managed to substantially raise gas production, especially from the giant South Pars Gas Field in the Persian Gulf to meet the growing needs of power plants. However, households’ demand was so high last winter that gas delivery to power plants was cut by half falling to 100 mcm/d.
While average global gas consumption has risen 2% in the past three decades in Iran, demand has hiked by a massive 4% during the same period.
"Such consumption patterns must change, or else there will be another energy crisis,” experts have regularly warned.
IGAT is a series of nine large diameter pipelines built to supply gas from refineries in the south (Khuzestan and Bushehr provinces) across the country.
Domestic Capabilities
On the role of local manufacturers in promoting the key gas sector, Joulaei said, “The gas industry is focused on domestic capabilities and most equipment used in the distribution sector are made by local firms.”
In recent years, NIGC has linked more than 15,000 villages. Every year, almost 1,000 kilometers of gas transmission lines are laid across the country, thanks to the efforts of domestic engineers.
Iran has one of the largest gas networks in the world. Close to 40,000 km of high-pressure gas pipelines have been laid in four decades and there are plans to add 5,000 km by 2026. In terms of gas infrastructure, Iran tops the list in Asia and is third in the world after Russia and the US.
Despite difficulties, including geostrategic challenges and the coronavirus pandemic, Iran has made noticeable progress in its natural gas industry in line with Sustainable Development Goals established by the United Nations General Assembly in 2015.
The goal is to ensure access to affordable, reliable, sustainable and modern energy for all to help open opportunities for people through economic opportunities and jobs, better education and health, more sustainable, equitable and inclusive communities, and greater protections from, and resilience to, climate change.
