Outsourcing Not to Undermine Gas Supply Stability

Outsourcing Not to Undermine Gas Supply StabilityOutsourcing Not to Undermine Gas Supply Stability

Ensuring stability of gas supply is a fundamental principle that should not be undermined by outsourcing, Deputy Oil Minister Hamid Reza Araqi said on Thursday.

Addressing a panel on "Outsourcing National Iranian Gas Company's Operations", Araqi said enhancing the quality of NIGC's products and adopting new organizational and operational approaches are among the most important plans of the company.

"Outsourcing is an important tool for reducing cost and improving quality. If an organization does all its work by itself, its work may affect its production quality, so it must recognize some important areas where it can reduce its costs and maintain high quality of its products and services," IRNA quoted Araqi as saying.

The official said outsourcing NIGC's projects should not affect stability of gas production.

"Privatization and liberalization are not synonymous with lack of monitoring. Improving efficiency and cutting costs are objectives that NIGC intends to fulfill by changing old strategies and formulating new ones," he said.

NIGC was established in 1965 as one of the four main companies affiliated to the Oil Ministry. It is responsible for the purification and delivery of natural gas to the domestic, industrial and commercial sectors and power plants.

Iran has the largest gas network in the Middle East with 22,000 km of high-pressure pipelines.