Majid Chegeni made the remarks in a press conference held on the sidelines of the 26th International Oil, Gas, Refining and Petrochemical Exhibition of Iran (Iran Oil Show 2022) on Sunday.

The official also announced that the country has exported averagely 20 million cubic meters (mcm) of gas per day to Iraq in the past year, which is 35 mcm at the present.

“We also exported about nine mcm of gas to Turkey per day in the previous year”, he added.

Daily gas production up 45 mcm

The NIGC’s managing director also announced that Iran’s daily gas production increased 45 mcm in the past year.

He said that 98.4 percent of the cities in the country enjoy natural gas at the moment, which will reach 99 percent, and 85.4 percent of villages enjoy natural gas which will reach 89 percent.

The official put the number of cities and villages supplied with natural gas at 1,221, and 35,575, respectively, and said that gas is being supplied to 29 cities and 2,952 villages.

Chegeni put the number of subscribers at 28.5 million in the household sector, at 90,000 in industry sector, 60,000 in agriculture sector, and said that there are 2,280 CNG stations, 330 power plants, and 2,000 public units supplied with gas in the country.

He said that gas was supplied to six cities, 1,426 villages, 1,300 large industrial units, and 6,200 small industrial units in the previous year.

NIGC’s prioritized projects in this year

Elsewhere in his remarks, the managing director of National Iranian Gas Company referred to the priority projects of his company in 1401, and said “The main focus of the NIGC is to supply gas to deprived and remote areas, and in this year’s target, Sistan-Baluchestan, and Hormozgan province and the southern part of Kerman province have priority in gas supply.”

In recent days, the gas transferring pipeline to Zabol (in Sistan-Baluchestan) was put into operation and gas was injected in 220 kilometers of the pipeline. Also, projects related to southern Sistan-Baluchestan are underway, he added.

The 26th International Oil, Gas, Refining and Petrochemical Exhibition of Iran (Iran Oil Show 2022) kicked off at Tehran Permanent International Fairgrounds on Friday.

The motto of this year’s edition of the exhibit is “Knowledge-Based Oil, Iranian Production, and Global Export”.

The inauguration ceremony of the oil show was participated by Oil Minister Javad Oji, Parliament Speaker Mohammad-Baqer Qalibaf, National Iranian Oil Company (NIOC) Managing Director Mohsen Khojasteh-Mehr, senior officials of oil industry, and some MPs.

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Speaking to ILNA, Hossein Montazer Torbati touched upon the latest condition regarding the contract for exporting gas to Turkey and said the current contract is underway but for its extension, correspondence has started.

He said many of Turkey’s gas contracts with other countries are on the stage of being finalized that all of them can affect each other.

He added that since the company is to offer some part of its gas production at the bourse, the climate for expansion of contracts by the NIGC and even private companies is open and the bourse can be a good climate for the future of the gas export.

Montazer Torbati added that Turkey has changed style of handling its gas contracts and it has involved private sectors into the gas contracts and Iran may do the same and the private sector may be involved in the contracts.

On exporting gas to Afghanistan, he stated that the company pursues gas exports to this country and talks are underway with the district companies and towns near the border.

He added that exports to Afghanistan depend on restoring ties and primary guarantee between the governments but the company is trying to export gas to Afghanistan via private sector companies.

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“The current contract with Turkey is effective and exports to this country are ongoing while correspondence has been made to extend the contract,” Hassan Montazer Torbati told ILNA on Wednesday.

Many of Turkey’s gas contracts with other countries are in the final stages, all of which affect each other, Torbati noted, adding: “In any case, I think that given that we are going to offer part of our natural gas in the energy exchange, there is room for the development of contracts, whether through the NIGC and the Oil Ministry or private companies and in this regard the energy exchange can be a good space for future gas exports.”

The NIGC head further said that Turkey has made some changes in its energy import procedures and has somehow included the private sector in its gas contracts, In Iran, in addition to the Oil Ministry, the private sector may also enter the arena as well.

Regarding gas exports to Afghanistan, the official noted: “Exports to this country are also being pursued and we are mainly focused on regional companies and exports to cities near the border.”

“Exports to Afghanistan depend on communication and initial assurances by the two governments, but in any case, we try to export to this country through private sector companies,” Torbati added.

Iran is Turkey’s second-biggest supplier of natural gas after Russia. Tehran sells about 10 billion cubic meters a year of gas under a 25-year supply deal to Turkey which it uses for electricity generation.

The gas exports are carried out via a 2,577 km (1,601 miles) pipeline running from Tabriz to Ankara.

Turkey imported 7.7 billion cubic meters of gas from Iran in 2019 or some 17 percent of its total gas imports.

After the re-imposition of U.S. sanctions in November 2018, Turkish President Recep Tayyip Erdogan made it clear that his country would continue to buy natural gas from the Islamic Republic.

Natural gas exports from Iran to Turkey came to a halt on March 31, 2020, after an explosion and fire at a pipeline on the Turkish side of the border; the reasons for the blast were not officially announced.

Iran resumed gas exports to Turkey after a three-month hiatus.

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“Currently, more than 90 percent of adsorbents, more than 95 percent of catalysts, and over 90 percent of solvents and chemicals needed in the gas industry have been localized,” Head of NIGC’s Production Coordination and Supervision Directorate Masoud Zardovian said.

Speaking in a seminar on coordinating supply and demand in the gas industry on Saturday, Zadovian said: “We are now looking to improve the quality of products, and to facilitate access to them while making prices more competitive.”

He pointed to the sustained and safe supply of clean gas for the consumers as the major ax of his company’s activities and said: “All the major policies of the company are defined and determined according to the mentioned goal.”

Going hand in hand with the oil industry, the Iranian gas sector has been enjoying drastic technological advances in recent years, and numerous knowledge-based companies, research centers, and institutes have become active to help the industry reach its goals of self-sufficiency.

The growth in the mentioned sector is so fast-pacing that according to the NIGC Head Hassan Montazer Torbati the country’s gas industry will become completely self-sufficient by 2024.

The indigenization and domestic production of oil and gas industry equipment has been always among the objectives of the Iranian Oil Ministry. However, the issue became further highlighted since the re-imposition of the U.S. sanctions and Washington’s determination for cutting off the Islamic Republic’s ties with the world advances in knowledge and technology, especially in the oil and gas sector.

In the past few years, the ministry has been seriously supporting knowledge-based companies and startups, and several events, exhibitions, and panels have been held in this regard to encourage the mentioned companies’ contribution to the country’s oil and gas industry.

In June 2019, NIGC held a reverse pitch panel to address the industry’s technological issues and to benefit from the capabilities and capacities of the knowledge-based companies and academics active in the industry.

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“This doesn’t mean that eight million subscribers have been offered free gas but the figure is the sum of the issued free bills since the beginning of the program, since some consumers have been given 100 percent discount over their bills for several consumption periods,” Torbati explained.

According to the official, in terms of percentage, nearly 17 percent of the subscribers have been offered free gas so far. The figure is estimated to reach 30 percent in the current year, he said.

Back in December 2020, First Vice President Es’haq Jahangiri sent a decree to the Oil Ministry providing the cabinet’s approval and the necessary instructions for offering free natural gas to low-consuming subscribers.

Based on the mentioned decree, NIGC was required to give a 100-percent discount on the gas bill of those households whose consumption is in accordance with some criterion provided by the cabinet.

Earlier that month, government spokesman Ali Rabiei had announced that the cabinet approved a plan to provide some 35 percent of the country’s 83 million population with free water, electricity, and gas in a bid to support low-income families.

“Energy-efficient households, who are mostly from low-income strata of the society, will receive free-of-charge water, gas, and electricity,” Rabiei had said.

The new incentive packages are implemented following the successful implementation of a similar program by the Energy Ministry based on which the ministry awarded low-consuming households with a 100 percent discount on their electricity bills.

Back in August 2020, Iranian Energy Minister Reza Ardakanian had announced his ministry’s plan for awarding low-consuming electricity subscribers with free electricity.

“This program will be implemented to both reward low-consuming subscribers and to encourage others to consume less, Ardakanian said in a press conference on the occasion of the Government Week.

President Hassan Rouhani said in early December 2020 that it is a great honor for the government to provide low-income families with free water, gas, and electricity.

“We supplied people with free gas, but we became self-sufficient in gas production beforehand so that we can meet the domestic demand in winter and even be able to export”.

“In the field of electricity, we achieved notable growth. We added the generation capacity and then we made supply free of charge. We also took substantial measures for reducing water consumption and water loss in different sectors,” Rouhani explained.

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According to Farshid Kheibari, EOGC’s production goals for the mentioned year were realized by 104 percent and even in some days the output exceeded 63 mcm/d, Shana reported.

EOGC was established in December 1998 in line with the policy of decentralizing the management in Iran’s oil industry.

The company is operating projects mainly in the east of the country. Currently, it is active in Khorasan Razavi province and is in charge of production from Mozdouran sour gas reservoir as well as Shourijeh B, Shourijeh D, and Gondbadli sweet gas reservoirs in the northeastern city of Sarakhs.

Referring to the need for accelerating the implementation of gas storage development projects as strategic projects in the oil industry, Kheibari also announced the storage of 1.856 bcm of gas in the Shourijeh D reservoir in the previous year.

“Due to the increase in the country’s gas consumption and in line with the Oil Ministry programs for providing sustainable gas for domestic and industrial sectors during winter, as well as the need for gas imports, especially in the northeast of the country, last year we managed to store 1.856 billion cubic meters of gas in Shourijeh D in the first eight months of the previous year (March 20-November 20, 2020),” Kheibari explained.

“A total of 2.5 billion cubic meters of gas was reproduced during the previous year’s cold season, which compared to the same period of the preceding year increased by about 28 percent in terms of storage and 18 percent in terms of reproduction,” he added.

Sustainable energy supply in the north and northeast regions which are significantly far from the main centers of gas production in the south of the country and the need to reduce dependence on gas imports has always been one of the main concerns of the Oil Ministry.

In this regard, according to NIGC plans, the capacity of the two storage facilities, Sarajeh and Shourijeh, is planned to increase to over seven billion cubic meters in near future.

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IRAN NEWS ECONOMIC DESK

TEHRAN – The CEO of the National Iranian Gas Company (NIGC) announced that the initial plan to export Iranian gas to Afghanistan has been prepared to be developed by the private sector.

Hassan Montazer Torbati said on Monday, at a ceremony to launch 181 gas supply projects in Fars province, southern Iran, said: “Increasing production in South Pars has been one of the supports for the development of the country’s gas industry.”

He said beck in 2013, Iran consumed 34 billion liters of liquid fuel per year which has been replacing with natural gas since then and is hoped to be fully replaced by natural gas by 2024.

Torbati stated that the annual consumption of these 34 billion liters of fuel cost about 17 billion dollars, adding that this cost was gradually reduced and by 2019, about 11 billion dollars of revenue was obtained from this replacement.

He added: “This revenue will reach about 28 billion dollars by March 2024, and this increase will continue after that.”

The NIGC CEO further told reporters that the discovery of a new gas field in Turkey had no effect on its gas contract with Iran.

He said: “This issue has no effect on the current contract for Iranian gas exports to Turkey. We must see how the Turkish market would be impacted by the demand in the country. The amount discovered is not a significant figure for their total needs, and we hope to start negotiations on a contract extension soon.”

Montazer Torbati said that Iran is going to discuss renewing its gas export deal with Turkey in near future.

“The discovery of the new gas field in the Black Sea has no effect on our contract and the discovered reserve is not significant compared to Turkey’s demand. We will start negotiations to renew the contract in the near future,” Montazer Torbati said.

“Gas exports to Turkey are ongoing based on the current agreement,” the official added.

Regarding Iran’s gas exports to Afghanistan, the official said the initial plan for exporting gas to Afghanistan has been prepared by NIGC. The project will be developed by the private sector.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Managing Director of National Iranian Gas Company (NIGC) Hossein Montazer Torbati announced that the company has started manufacturing 35 items of strategic and widely-used goods in the national gas industry in cooperation with the knowledge-based Iranian companies, adding that concurrent with increase in the production capacity and processing in refinery, the national gas industry will soon obtain self-sufficiency and it will need no imports of foreign goods and will celebrate the achievement.

Montazer Torbati pointed to the increase in Iran’s gas production capacity and setting consecutive records in the production chain, transfer, distribution, development and exports of gas, adding that concurrent with massive planning for retaining the gas production, the developmental plans of the gas industry have not been halted in the sanctions era and even during the outbreak of the Coronavirus.

He added that in the year of surge in production, the company has put on its agenda some plans for maximum utilization from the capacity of manufacturers, contractors and Iranian producers, reiterating that to make production network needless of imports, the company has defined and started a four-stage strategic plan for indigenizing knowledge and technology of widely-used items in the gas industry.

Montazer Torbati pointed to the identification of technological and strategical needs of the national gas industry and 20 items needed by NIGC in refining, transfer and distribution sectors, asserting that currently 35 most demanded items in the gas industry have been identified and the work for their manufactures have begun in cooperation with knowledge-based Companies which will reduce the national gas industry’s dependence on foreign purchase and imports.

He further announced the company’s support from construction of the first complex for producing chemical materials which are needed for sweetening the gas in the country, adding that it is expected the complex to join the network by the end of next year and it will make gas industry needless of importing four items of chemicals.

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