5 October 2026 - 10:55
  • News ID: 2992827
NIGC floats 'virtual refinery' model to cut gas consumption

SHANA (Tehran) — The National Iranian Gas Company said a new approach it calls a "virtual refinery" could free up gas capacity by reducing consumption rather than building costly new facilities, an official said.

Ali-Asghar Rajabi, the company's energy and carbon manager, said new private gas-saving operators will work with firms including Hamrah-e Avval, Digikala and Achareh to enlist public participation in saving gas. The gas saved would effectively replace capacity that new refineries would otherwise provide.

"Alongside the measures taken to increase gas production in the country's oil and gas industry, consumption management can help ensure a stable energy supply and ease some of the pressure on the network," Rajabi said.

Under the model, savings from lower consumption can have an effect similar to adding new capacity to the gas grid, he said. Gas saved by changing consumption patterns, in effect, becomes new capacity available to the network.

Not just the gas company's job

Rajabi said the projects' success depends on resolving implementation problems, attracting investment, building capacity, coordinating among agencies and winning public support. Judging the final results without considering those factors would be premature, he said.

He said the effort is not the NIGC's responsibility alone. Meeting its goals will require cooperation from the Oil Ministry, the Iranian Fuel Conservation Organization, industry, agriculture, Parliament and other bodies, he said.

Private firms interested in taking part can get information and register through the gas-saving operators’ section of the company's website, Rajabi said. Applicants first state whether they want to operate as a Type 1 or Type 2 gas-saving operators, then upload required documents and submit their applications.

Rajabi said the process is transparent. The company has tried to give firms all the information they need, and it has received no complaint from a qualified company that was barred from participating, he said.

Unlike a tender, there is no fixed window, such as 10 days, for applying, he said. Any organization that can cut gas use within the regulations, even by a single cubic meter, can take part.

The aim is to harness the private sector's ability to manage consumption and reduce gas losses, he said.

Challenges of a new model

Rajabi said the gas-saving operator model is new to Iran but has worked elsewhere. In one Western country, he said, a single gas-saving operator company sells about 35% of the nation's gas at retail. Introducing it in Iran is bound to bring difficulties, he said.

Those could involve management, procedures, laws, oversight bodies and regulations, he said. Some relate to staffing, since a company expected to manage and distribute large volumes of gas to consumers needs skilled personnel.

Others are cultural, he said. Gas-saving operators must connect with organizational culture and with the public's consumption habits to manage demand effectively.

News ID 2992827

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