Natural gas production in Iran has witnessed a growth of 4 billion cubic meters over the last six months compared to the same period of a year ago, a deputy manager at the National Iranian Gas Company said.
“The state-run company has injected close to 158 bcm of gas into the Iran Gas Trunkline over the period, up 4% compared to that of 2021. Despite the rise in output, it is predicted that consumption level will shoot up by at least 6% between October and February 2023,” Ahmad Zamani was also quoted as saying by ILNA.
The official added that NIGC’s annual production has reached 317 bcm, of which 44% are consumed by households and commercial units.
Giving a breakdown, he noted that industries, power plants and exports account for 17%, 30% and 6% of the total output and the rest is stored in storage facilities of Qom and Khorasan Razavi provinces.
Zamani said gas use in the household sector in other countries, including Russia and the US, doubles in winter which is understandable, but the figure rises sixfold in Iran between December and February, which is totally abnormal and puts tremendous pressure on NIGC.
“We’re not only unable to fulfill our international export commitments, but the thermal power plants also have to burn eco-unfriendly mazut instead of gas, causing massive pollution in metropolitan cities,” he added.
Expressing concerns over the injudicious consumption pattern in the country, he said the future of energy supply in Iran is at risk unless subscribers rethink their consumption habits.
The NIGC official noted that raising energy tariffs might have some short-term effects but it has proven to be inefficient in the long run, as consumers get used to high prices and resume their bad habits.
Energy-Efficient Buildings
Constructing energy-efficient buildings with special materials that reduce energy wastage and replacing traditional gas meters with smart devices are the best course of actions, however, they may take long as there are close to 27 million ordinary gas meters in Iran.
Of the total figure, 27,000 belong to high-consumption industries and should be converted to smart gadgets so that NIGC can monitor consumption more accurately.
According to the NIGC official, the implementation of the scheme that is already underway needs an investment of $4 billion and is expected to become operational in four years.
“It is regrettable that as little as 6% of NIGC’s total output are being exported,” he added.
Almost all cities and 90% of small towns and villages are connected to the gas grid, yet abnormally high consumption has nothing to do with the number of subscribers, but to the wrong consumption patterns.
As long as people’s perception regarding consumption does not change and buildings are not well-insulated, whatever is supplied will be burnt unwisely.
“Investing in projects to raise public awareness concerning the value of energy will pay off much faster than funding initiatives that raise output,” he said.
NIGC converts close to 21 million cubic meters of natural gas to compressed natural gas per day, all of which are used in CNG-hybrid vehicles on a daily basis.
“If it were not for CNG, the consumption of gasoline would rise by as much as 21 million liters per day and the National Iranian Oil Company would have to import the commodity, as gasoline demand is already equal to supply.”
According to Zamani, the current gasoline demand in Iran (100 million liters per day) will surpass supply (105 mlpd) in the foreseeable future and the most effective strategy to help prevent NIOC from becoming a gasoline importer again is by developing the loss-making CNG sector.
CNG Hybrids
The CNG industry cannot flourish, unless more gasoline-powered public transport and commercial vehicles are converted to compressed natural gas hybrids.
CNG fuel is sold at 2,400 stations in the country, but NIOC is facing serious problems in increasing CNG pumps due to high land prices plus major hurdles in importing equipment and parts.
The US, European Union, Russia and China daily use 75 mcm, 45 mcm, 40 mcm and 25 mcm of the fuel, respectively. An estimated 15 million CNG-run vehicles ply the roads worldwide, of which 1.5 million are in Europe.
In the last decade, an estimated $2.4 billion were invested to expand CNG use in Iran.
“The length of gas pipeline in Iran has exceeded 38,000 kilometers and close to 1,000 km were added to the grid in one year,” he said, adding that NIGC is in charge of operating 88 gas pressure boosting stations.
According to Zamani, the national gas grid is equipped with 326 compressors, including high-pressure, turbo, electrcal and engine compressors.
Moreover, 10 turbines went on stream last year.
With the installation of new pipelines and construction of pressure boosting stations, more gas can be transmitted through the Iran Gas Trunkline, which is a series of nine large diameter pipelines built to supply gas from refineries in southern Iran (Khuzestan and Bushehr provinces).
“In terms of the size of network, NIGC ranks first in Asia and the Middle East, and fourth in the world after the US, Russia and Canada,” he said.
