Gas Management Mechanism Enters Operational Phase: Iran's Deputy Minister

The CEO of the National Iranian Gas Company (NIGC) said the mechanism for gas operator companies has officially entered the operational phase, emphasizing that sustainably addressing the country’s energy imbalance cannot rely solely on increasing gas production and supply.

Saeed Tavakkoli said curbing energy waste through consumption optimization and empowering gas operator companies are among the country’s fundamental energy priorities. According to the NIGC, Tavakoli made the remarks at the second meeting on implementation challenges facing Type 2 contract gas operator companies. The meeting was attended by senior oil and gas industry officials, gas operator companies and CEOs of provincial gas companies via videoconference.

Referring to measures to provide financial support and develop the energy-efficiency market, Tavakkoli said the operator-company mechanism has moved beyond discussion and entered the implementation stage. He cited the allocation of a 5 million cubic meter gas-savings certificate for an energy-efficiency project in Yazd province as a tangible example.

The move has also enabled the official trading of the certificates on the Iran Energy Exchange, he said, adding that it demonstrates the mechanism can be expanded to other players and sectors. Tavakkoli emphasized the critical role of gas operator companies in managing consumption, saying the sector could play an important role in the future of energy consumption management and conservation in Iran. “If they are removed from the country’s energy-saving efforts, there will be little else left on which to seriously pursue this issue,” he said.

Tavakkoli also outlined the technical requirements and infrastructure developed to measure energy savings. He said a pilot measurement and verification (M&V) guideline has been developed and sent to provincial gas companies for seven categories of consumers: power plants, greenhouses, poultry farms, industrial bakeries, industrial kitchens, brick production and waste-heat recovery. To remove implementation barriers and speed up procedures, he said three technical, executive and contractual working-group meetings have also been held in Razavi Khorasan, Golestan and Mazandaran provinces. The meetings are aimed at establishing a standardized and transparent framework for verifying measures implemented by gas operator companies.

Tavakkoli said the Oil Ministry is the only legal authority responsible for addressing the issues and demands of gas operator companies. “The issue is not simply gas production and sales. If we produce and supply gas but energy waste and inefficient consumption continue on the demand side, the country’s main problem will not be solved,” he said.

The CEO said the mechanism will be pursued successfully through intersectoral cooperation and support from the Parliament’s Article 90 Commission, the Plan and Budget Organization and other government bodies that play key roles in the process. Referring to the country’s energy supply situation and the round-the-clock efforts of gas industry workers, Tavakoli said all available production capacity and early-production projects are being used despite existing constraints.

However, he said consumption management goes beyond the authority of any single organization and requires accountability from all government agencies and provinces. Tavakkoli thanked the oil and interior ministers, the Plan and Budget Organization and the National Security Council for their cooperation in integrating and balancing consumption management nationwide. He emphasized that fuel distribution and management must be based on actual demand, efficiency, climatic conditions and national priorities, saying broad cooperation and accelerated implementation of gas operator projects would help establish a sustainable gas balance during the cold months. - Shana