Decrease Seen for Gas Consumption by Iranian Energy Service Firms

The CEO of the National Iranian Gas Company said the Oil Ministry is aggressively pursuing gas-efficiency measures in cooperation with energy service firms, projecting a 25% to 35% reduction in consumption at the end of the demand chain once the program is fully implemented.

Speaking Sunday at a ceremony marking the unveiling of the plan and the signing of contracts with 22 service companies, Saeid Tavakoli said the initiative is new but critically important under current conditions and presents operational challenges.

He said the program has moved beyond the sole authority of the Oil Ministry and the gas company and is now enshrined as a legal requirement under the country’s Seventh Development Plan and has received Cabinet approval.

Tavakoli said the Oil Ministry has formed a specialized team in cooperation with its planning deputy to clarify all aspects of the project that could create uncertainty. Following those efforts, several service companies have already begun operational activities.

Service Firms ‘Democratize’ Energy Management

Tavakoli said energy efficiency is not a one-dimensional issue and involves multiple stakeholders, adding that service companies have effectively “democratized” energy management.

“Today is an important day in the history of the Oil Ministry and the National Iranian Gas Company,” he said.

Addressing company representatives, Tavakoli said initial evaluations were conducted with lenient criteria because the model is still emerging, and that 35 firms are now ready to operate in the sector. He urged the companies to build consumer trust through strong performance, citing global experience with similar models.

He said one of the project’s key advantages is the creation of an energy-operations intermediary between the government and consumers.

Tavakoli said the government’s role is to provide full backing to ensure the program’s success, noting that pilot projects involving 40,000 customers achieved record savings of between 41 million and 46 million cubic meters of gas.

“With full implementation, we expect to see a 25% to 35% reduction in gas consumption at the end of the demand chain,” he said. - Shana