The state-run National Iranian Gas Company produced an estimated 232 billion cubic meters of natural gas in the last fiscal year (ended March 20, 2022), the head of NIGC said.
“Of the output, 215 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,” Majid Chegeni 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, Chegeni noted that of the total use, households and the commercial sector accounted for the major share of consumption at 115 bcm during the one-year period, indicating no change compared to 2020.
“Gas consumption in industries, namely petrochemical and cement factories, reached 40 bcm,” he added.
According to the official, gas delivery to thermal power stations reached 60 bcm in the 12-month period.
Referring to low gas prices in Iran, Chegeni noted that although Europeans have to pay at least $2 for each cubic meters of clean fuel, Iranian household consumers are charged less than 1 cent for the same volume.
“NIGC has launched a smart gas meter project in collaboration with domestic firms to optimize and reduce energy consumption,” he added.
The plan is aimed at replacing traditional meters with smart counterparts not only to minimize human error in reading the meters but also to prevent gas meter fraud. It is estimated to cost $4 billion and will be completed in four years.
Local contractors involved in the initiative are the second largest mobile operator MTN-Irancell, FANAP ICT Company, affiliated to Bank Pasargad, Ekbatan Gas Control Company and Khatam University in Tehran.
The official noted that the project will take advantage of Narrow Bandwith Internet of Things.
Smart Devices
As soon as the smart device is installed, tampering with the meter, which is effectively cheating the utility company, will be impossible as the firm will be informed about the interference immediately.
“The advanced system puts an end to the manual meter reading, which is prone to technical error and loss. Smart meters have been used in Europe and the US since 2001,” he added.
By omitting human error through the smart meter, gas, electric and water consumption can be recorded more accurately. Users are informed about their daily use and sent notifications in case of excessive consumption.
Interfering with something as explosive and flammable as natural gas poses a significant risk. While the act is perceived as a victimless crime, it can cause huge damage to the people and building involved.
What’s more, meddling with gas meters is highly dangerous as it damages the gas supply and can lead to gas leak.
Some steal energy to get cheaper bills and avoid paying for their actual usage. NIGC estimates that $15 million worth of gas are stolen each year in Iran.
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.
Gas Reserves
Highlighting Iran’s position as one of the world’s biggest owners of gas reserves, the NIGC chief noted that Iran has great potential for the production and export of this natural resource as well as cooperation in ensuring energy supply security.
“Despite the US unilateral sanctions, Iran has been able to increase its gas production and implement large-scale projects in upstream and downstream oil and gas sectors by relying on its domestic capabilities and technical knowhow,” he said.
Iran is also one of the leading countries in developing a domestic gas supply network, covering over 95% of the population, and replacing liquid fuels with natural gas in industry, transit and power plants.
The share of natural gas in Iran’s energy basket has grown over 75% and this progress will hopefully increase the country’s exporting capacities as well.
The official described natural gas as a clean and safe source of energy that is expected to have a considerable share in the world’s future energy basket.
According to Chegeni, natural gas can also be a contributing factor in the world’s challenging path of economic restoration following the coronavirus pandemic.