Speaking to reporters on Wednesday on the sidelines of the 19th Iran-Russia Joint Economic Commission, Saeid Tavakoli said the most important elements of an export contract are infrastructure and the hardware-defined delivery point. He said the gas import agreement with Russia has been finalized in technical, contractual and legal aspects.

Tavakoli said the delivery point, timing and duration of the contract have been specified and made operational, while price and payment terms remain under negotiation. He added that gas imports from Russia will be routed through a third country because Iran and Russia do not share a land border.

On exports to Turkey, Tavakoli said gas shipments “were never halted,” and negotiations to extend the export contract are underway.

Gas tariff reform with a justice-oriented approach

Tavakoli said gas tariff reform was one of the key decisions taken by the 14th administration. He said the Planning and Budget Organization finalized the framework based on upstream laws, including the Subsidy Reform Law, and that the Cabinet’s resolution will be communicated to the National Iranian Gas Co.

Under the new mechanism, Tavakoli said the tariff structure has been reduced from 12 consumption tiers to four, and climate classifications expanded from five zones to 1,300. The first and second tiers cover low- and average-consumption households, with gas charges for the first and second income deciles in the first tier set at zero.

He said more than 90% of subscribers fall within the first and second tiers, while nearly 10% are in the third and fourth tiers. The fourth tier represents very high-consumption users, accounting for about 1.5% to 2% of subscribers but more than 6% of total gas consumption.

Budget allocation for gas supply completion

Tavakoli said 3 “hemat” has been allocated in the proposed 1405 budget to extend gas supply to unserved areas. Priority will be given to completing ongoing projects and improving gas coverage in cities and villages where penetration rates lag provincial averages.

He cited positive results from a pilot program involving gas service operators in Yazd province. Provincial gas companies signed 22 contracts with operator firms across sectors including brickmaking and bakeries. Savings certificates will be awarded based on verified reductions in gas consumption.

Tavakoli said energy management initiatives by operator firms will benefit the environment, the National Iranian Gas Co., the operators themselves and industry, while also improving the energy intensity index.