Saeid Tavakoli said Iran’s gas production capacity is fixed, but how energy is consumed plays a decisive role in balance and sustainability. Speaking Thursday on a television program, he said about 850 million to 860 million cubic meters of gas are currently injected daily into the national grid under winter operating conditions, placing Iran as the world’s third-largest producer of dry gas.

However, he said winter demand surges sharply. Consumption by households, commercial users and small industries rises from about 435 million cubic meters per day to much higher levels, reaching roughly 670 million cubic meters based on the latest figures.

“In such conditions, we are forced to impose limits on other consuming sectors,” Tavakoli said. If the entire energy system relied solely on gas and all demand were fully met, Iran would face an imbalance of about 300 million cubic meters per day, he added, noting that no country supplies all sectors exclusively with natural gas.

Heavy Reliance on Gas a Structural Weakness

Tavakoli described the lack of diversity in Iran’s fuel basket as a major structural flaw, saying natural gas accounts for more than 72% to 73% of the country’s total energy mix. In winter, after household and commercial consumption surges, three major consumers remain: power plants, large industries and the Oil Ministry’s operational needs for production.

He said gas deliveries to power plants are higher in summer, allowing liquid fuel reserves to be built up. In winter, as household demand rises, gas supply to power plants declines and they are forced to switch to liquid fuels.

While this substitution is common worldwide, Tavakoli said the difference is that Iran mainly uses diesel and fuel oil, whereas countries such as China rely heavily on coal, often locating polluting plants away from densely populated areas.

 Households Top Gas Supply Priorities

Tavakoli said supplying households, commercial users and small industries is the top priority, followed by power plants to ensure electricity stability. Any surplus is allocated to large industries and operational uses.

He noted that large-scale gas storage is not possible during warmer months, but said gas storage volumes increased by about 20% this year compared with last year.

Iran’s energy challenge, he said, stems from both production and consumption, highlighting energy intensity as a key international indicator where Iran performs poorly. “Unfortunately, Iran is among the countries where energy intensity continues to rise,” he said.

Even if Iran increased gas production enough to move from third to second place globally, Tavakoli said, the problem would persist without changes in consumption behavior, efficiency and management.

 Efficiency Gains Rival New Production

About 70% of gas supplied to buildings is used for space heating, Tavakoli said, calling this “a very significant figure.” He said relatively simple measures — proper insulation, high-efficiency heating equipment, double-glazed windows and maintaining indoor comfort temperatures — could yield major savings.

In many countries with climates similar to Iran, he said, comfort temperatures are strictly kept between 18 and 21 degrees Celsius. Reducing household temperatures by just 2 degrees Celsius could save gas equivalent to the output of two phases of the South Pars gas field, he added.

Tavakoli said roughly 80% of winter gas consumption is in the household, commercial and small industrial sectors, making consumption management in homes the most effective solution. He said the National Iranian Gas Company has optimized about 114,000 boiler rooms nationwide, about half of them in government buildings.

Energy imbalance in Iran, Tavakoli said, is not due to insufficient production but to inefficient and improper consumption across households, industries and power plants, as well as losses that remove gas from the efficiency cycle.

He also pointed to geographical challenges, noting that about 77% of gas production is in southern offshore areas, while most consumption occurs in the north, making transmission complex and costly.

 New Energy Intermediary Model

Tavakoli said a new Cabinet-approved framework introduced this year creates “energy intermediaries” that identify and manage verified consumption savings, allowing the saved gas to be redirected to productive sectors of the economy.

He said this approach boosts production and economic growth, improves energy efficiency and helps reduce environmental impacts.

Consumption management, he said, requires both cultural change — convincing consumers that saving energy creates economic value — and strict enforcement of regulations, particularly national building codes.

In industry, Tavakoli said, energy efficiency is a binding requirement. Under higher-level policy documents, some sectors, such as cement, must improve energy efficiency by at least 2% annually.

He said consumption management delivers the fastest and highest returns, though production growth remains on the Oil Ministry’s agenda despite requiring heavy investment.

Tavakoli added that since last year, there have been no gas supply cuts to households or commercial users, even in northern regions, crediting integrated management and the work of energy sector staff. Iran operates about 41,000 kilometers of high-pressure pipelines and 95 compressor stations nationwide, he said, ensuring gas delivery across the country.