Annual Gas Consumption at 232bcm
In Iran, access to natural gas distribution network is 95%. Iran owns one of the largest gas pipeline networks. Although natural gas consumption in Iran was up 8% last calendar year compared with that of the year before, there was no cut in gas supply in consumers. Iran distributed 232 bcm of gas in the calendar year to March 2021.
Hassan Montazer Torbati, CEO of National Iranian Gas Company (NIGC) believes that although the gas consumption record was broken last calendar year, this industry did its job so well as to avoid any disruption in the gas transmission and consumption. In any case, the gas industry left behind a successful winter despite unprecedented consumption level.
Some of major initiatives in the gas industry last calendar year were as follows:
Natural Gas Processing at Refineries
Iran’s gas refining capacity reached 1.31 bcm/d last calendar year. The key point is the sustainable processing and transmission of gas. Although Iran’s extended gas network is a strength of this industry, gas consumption in Iran still exceeds global standards. This issue has been highlighted time and again by the petroleum minister and NIGC officials. Thanks to enhanced gas production from the South Pars field under the Hassan Rouhani administration, Iran has ensured sustainable gas supply. But last January, gas processing hit a record 840 mcm/d. To that effect, transmission of more than 818 mcm/d of gas showed unbridled gas consumption in the country, in addition to record gas production. Totally, Iran’s gas production increased about 10 bcm, 7bcm of which went to the household sector.
Masoud Zardian, NIGC’s director of coordination and supervision on production, said gas supply record was successful in winter. He added that a long-term 15-year plan had been devised to preserve the gas production ceiling.
Gas remains a source of clean fuel. Over the past eight years, the Petroleum Ministry has tried to supply gas to power plants and reduce fuel oil consumption. In the calendar year to March 2020, Iranian power plants were receiving 167 mcm/d of gas, which increased to 181 mcm/d the following year. These figures show reduction in pollution from power plants. Meantime, 262 bcm of gas was fed into the national pipeline, up 6% year-on-year.
NIGC officials have facilitated gas transmission and injection into national network, predicting the annual gas production to reach 500 bcm by the 2041 horizon. Therefore, it would be necessary to promote energy efficiency programs in a bid to earn the country $350 billion.
Gas Supply to Turkey Ongoing
Iran sits atop huge gas deposits, but its share of global gas trading is not proportionate with its reserves. Iran is currently exporting 30 mcm/d of gas to Turkey. Iran’s gas exports to Turkey were suspended for three months following an explosion at the Bazargan border in March 2020. But Iran’s gas exports to Turkey was not hindered.
Iran-Turkey gas agreement is expiring within years. Since the gas trading ambiance in Turkey has changed from the time the current agreement had been signed and Turkey’s private sector is now the main player in gas distribution, any new agreement would have to match Turkey’s gas market. It is not clear yet how the agreement would be renewed, but talks are under way between the two nations.
Montazer-Torbati has said Iran was trying its best to preserve its share of Turkey’s gas market and even increase it either through Turkey’s government or its private sector.
Another effective agreement pertains to Iran’s gas export to Iraq. Iran is supplying on average 15-20 mcm/d of gas to Iraq. Last summer, the figure varied between 40 and 45 mcm/d.
Iran has also plans to deliver gas to Afghanistan and talks have started to that effect.
The NIGC expressed hope to receive guarantees from the Afghan government and engage Iran’s private sector in gas exports to this country. He hopes Iran and Afghanistan would soon sign a memorandum of understanding for Iran’s gas supply to Afghanistan.
Montazer-Torbati, however, noted that anyone willing to operate projects in Afghanistan would seek guarantees. That would be a time-consuming procedure because in parallel with signing MOUs, market development has to be done.
“We predict to also consider exporting compressed natural gas (CNG) to Afghanistan. This country is not currently a gas consumer and the two countries can proceed with such projects as CNG. Iran would extend its gas pipelines as far away as its border [with Afghanistan] and in parallel we have to be able to create gas consumption in the Afghanistan market,” he said.
Sustainable Gas Supply
Ten gas distribution districts in Iran finished the calendar year to March 2021 with no halt in gas distribution. Mehdi Jamshidi-Dana, CEO of Iranian Gas Transmission Company (IGTC), said 850mcm/d of natural gas was being delivered to consumers. Montazer-Torbati said the figure has now reached 900 mcm/d.
A five-fold increase in NIGC’s fiber optic telecommunications capacity, safety of Iran Gas Trunkline 7 (IGAT-7), leak detection at more than 5,500k of high-pressure pipeline in four provinces by District 4 staff, self-sufficiency in the manufacturing of 650 items in District 7, guaranteeing gas transmission sustainability in IGAT-8 by District 5 staff, self-sufficiency of District 8 in IGV turbine manufacturing, development of digital systems in District 1 and application of knowledge management are among other measures undertaken in the gas sector.
95% Access to Natural Gas
Winter gas supply never stopped despite cold weather; rather it picked up speed. In his report to President Rouhani, Minister Zangeneh said 95% of Iranians had access to natural gas.
Gas supply to Sistan and Baluchestan Province is under way at a quick pace. The provincial head of NIGC has said that more than 65,000 natural gas customers had been counted in the province. The Khorasan Razavi Province Gas Company also announced that an auxiliary gas supply project had been completed in Zahedan.
Full gas coverage of North Khorasan Province, gas supply to 600 villages in South Khorasan Province, startup of gas supply projects in seven villages in Kurdestan Province, start of gas supply to five villages in Yazd Province, start of construction operations for gas supply to power plants in Kish Island, 111% increase in capacity building in gas supply to industries in Kerman Province and sustainability of gas supply to Ilam Province are among other projects.
Completion of operations for gas transmission to three villages in Firoozkooh County, startup of gas supply to Parsian Sepehr gas refinery, start of construction of 18 gas supply projects by the Gas Engineering and Development Company (GEDC), signature of MOU between GEDC and Khazar Exploration and Production Company (KEPCO) and startup of Phase 1 of the Zaran gas transmission line are among other news in this sector.
Other measures taken by provincial gas companies include natural gas odor meter technology acquisition and emergency and warning systems in Khorasan Razavi Province, as well as polyethylene pipeline location system in Bushehr.