According to NIGC, Saeid Tavakoli spoke about the current state of the national gas network and the condition of gas and fuel reserves. "This year, despite a roughly 13% drop in the country's gas production following the attacks by the American-Zionist enemy on 27 Esfand on the facilities and four refineries of the South Pars Gas Complex, we managed to keep the national gas network stable," he said. "Diesel reserves in liquid fuel tanks have now exceeded 3 billion liters, and the gas needed by all consumers has been delivered to the network without restrictions."
Referring to the performance of gas storage, he said significant records were set this year at the Shourijeh and Serajeh reservoirs. "At Shourijeh the storage record was broken for the second year running, and at Serajeh we reached a historic record for the first time," he said.
Tavakoli said network stability has so far been satisfactory. "As we enter the cold season and the consumption mix changes, the household and commercial sectors' share of gas use rises and the volume available to other sectors falls," he said.
60 mcm Rise in Gas Consumption
On consumption in recent days, Tavakoli said: "Since Saturday, gas consumption has risen by about 60 million cubic meters. We forecast that by the end of the week it will reach about 70 million cubic meters above last week's level."
On the return of lost production capacity, he said: "The plan was to bring 100 million cubic meters of lost capacity back into the production cycle before the cold season began. That figure has now reached an average of more than 95 million cubic meters."
Asked about the provinces with the highest gas consumption and about energy management programs, the NIGC chief said consumption in each province is directly tied to the number of subscribers and their consumption mix. "For example, on cold days at peak demand, Tehran Province uses about 125 million cubic meters of gas, and the share of other provinces in the network and distribution is managed in proportion to that," he said.
Tavakoli added: "To examine provincial consumption patterns more closely, we need to look at each province's consumption mix, which differs from one province to another. In Mazandaran, for example, about 94% of gas consumption goes to the household and commercial sectors. So even the smallest effort by subscribers in these two sectors to cut consumption can contribute significantly to the stability of the gas network."
He said: "Overall, gas consumption in each province varies with population, the number of subscribers and the consumption mix, and provincial consumption patterns cannot be assessed by comparing volumes alone."
Monitoring of Executive Bodies Through the Cold Months
Referring to measures taken on energy consumption management, the NIGC chief said: "One of this year's important steps, given the assigned duties, the president's emphasis and discussions at numerous meetings of the officials concerned, was defining a consumption baseline for each province. This baseline gives us a clearer consumption pattern and lets us assess the reduction in each province more precisely."
Tavakoli continued: "For government offices, in addition to the statutory duties, executive bodies have been required, on the president's instruction, to cut their gas consumption by 20% relative to their set allocation. Implementing this can make an effective contribution to managing the network and supplying gas to productive and industrial sectors."
On standard temperatures for executive bodies and household subscribers, he said: "In the administrative sector, 18°C has been set as the requirement. To ensure compliance, NIGC's inspection, monitoring and oversight teams began work on the 15th, after a drill the day before, and this will continue to the end of the cold season."
The NIGC chief added: "In households, under the set standards, the comfort range is 18 to 21°C. Besides helping the health of individuals and families, observing this range plays an effective role in reducing energy consumption and maintaining the stability of the country's gas network."
70% of Subscribers in the First Tariff Tier
On incentives for efficient consumers and programs to correct the habits of high consumers, Tavakoli said: "A normal consumption volume has been defined for subscribers. Fortunately, about 70% of the country's gas subscribers are in the first tariff tier. They are what we call efficient consumers and use gas in line with the set pattern."
He added: "About 18% of subscribers are in the second tier, whose consumption is classed as moderate. But subscribers in the third and fourth tiers fall into the wasteful and highly wasteful groups, because their consumption does not match the baseline and the pattern set for their city of residence."
The NIGC chief continued: "The company deals with subscribers under the tariff system and its statutory duties, and in my view part of the correction in consumption behavior is possible through this tariff mechanism. For example, this year the fourth-tier tariff for very high consumers has risen to a level close to the export price of gas."
Tariff Increases Applied in Tiers
Explaining the tariff mechanism, Tavakoli said: "Gas tariff increases are applied in tiers, in proportion to subscribers' consumption. The important point is that last year only about 1.33% of subscribers were in the fourth tariff tier, yet that same group consumed nearly 6% of the country's gas. The tariff approach is therefore pursued to achieve fairness in consumption and to align what people pay with how much they use."
On action against unauthorized gas use and illegal connections, he said: "This year there is a serious determination in the country to deal with these cases. These violations are seen only in some affluent areas, garden villas and villages outside the legal boundary and approved urban fabric. Cases identified through reports will be dealt with legally, meaning that besides cutting illegal connections, legal fines will also be imposed."
On gas supply this winter, the NIGC chief said: "This year we face an exceptional and very difficult year for gas supply. At least 11 provinces are exposed to gas stress, and the situation will be more widespread in three of them: Mazandaran, Golestan and North Khorasan."
Stressing the need for public cooperation, Tavakoli said: "Nevertheless, these programs can only succeed through collective will, effort, empathy and the cooperation of subscribers, because in winter about 80% of the gas injected into the network goes to the household and commercial sectors."
He said: "If subscribers lower their home temperature by just one degree, the savings could equal the output of one South Pars phase. This shows that even small steps in consumption management can make a big contribution to the stability of the country's gas network without affecting families' quality of life or comfort."
Efficiency Gains Are Not Limited to Power Plants
On gas supply to the country's industries and the possibility of restrictions in this sector, the NIGC chief said: "There are about 12 consumption codes in industry, and some fall into the uninterruptible category, including food and pharmaceutical industries, which are directly tied to food security and public health. Even when the network is under strain, these industries are never included in any gas cut plan."
Tavakoli added: "Alongside this group are major industries such as steel and petrochemicals, to which we have so far applied no supply restrictions, despite the roughly 13% drop in the country's gas production following damage to facilities. Of course, if gas consumption has fallen in some of these industries, part of that is due to damage done to industrial facilities and complexes during the war."
Stressing industry's role in the economy, he said: "In the industrial sector we are not dealing merely with gas consumers, but with a set of productive sectors that turn gas into products, added value, jobs and national output."
The NIGC chief continued: "Energy efficiency and higher yields are not limited to power plants and must be pursued seriously in industry too. The country's producers and industrialists must recognize that energy and how it is used is one of the most important issues in the national economy."
Referring to industry's share of national gas consumption, Tavakoli said: "In 1404, for example, about 37% of all the country's gas was consumed in industry. So if even limited attention is paid to energy efficiency and higher yields in this sector, it will have a significant effect on gas supply to other sectors."
Industries Face No Gas Restrictions
Pointing to the importance of supplying gas to small industries and production units, he added: "Another point to consider in industry is gas supply to small industries and productive businesses. Fortunately, this year not even one billion cubic meters has been cut from these sectors' share. This has been pursued on the president's instruction, to support small industries and preserve jobs, because despite their smaller consumption these units play an important role in the country's production chain and employment. So far we have applied no restrictions on gas supply to industries."
The NIGC chief described diversifying industries' fuel baskets as one of the key ways to manage gas consumption. "The second and very fundamental point is the need to diversify industries' fuel mix," he said. "In the cement industry, for example, part of the fuel needed by units in the warm season can be switched to liquid fuel, including fuel oil. This is one way of managing gas consumption that has been tried in practice. Within the fuel basket it provides to industries, the Oil Ministry uses this capacity to allow better management of gas consumption."
On whether this approach will continue through the rest of the cold months, Tavakoli said there are two fundamental challenges to consider. "The first is the chronic, accumulated imbalance we have faced over past years, which has meant a 250 to 300 million cubic meter shortfall in gas supply at peak demand," he said.
He added: "The second challenge is the new loss of production capacity from war damage, which has added about 130 million cubic meters to these limits. As I said, of the total 230 million cubic meters of lost capacity, about 100 million has so far returned to the production cycle, and about 130 million of it remains outstanding."
Each Cubic Meter of Gas Trades at About 84,000 Tomans on the Energy Exchange
The NIGC chief called the cooperation of household and commercial subscribers in managing consumption the main way through the coming period. "On peak days, about 80% of the country's gas goes to these two sectors," he said. "Every bit of savings in household and commercial consumption allows more gas to be allocated to power plants and industries, and helps keep the production cycle and the country's economic activity going."
On how the energy savings certificate scheme works and how subscribers benefit economically, Tavakoli said: "Fortunately, the Seventh Development Plan Law, particularly Article 46, provides suitable mechanisms for this. The Article 90 Commission of the Majlis and other officials and individuals concerned with implementing this law have followed it up effectively."
He added: "NIGC has defined the operational mechanism for this through operating companies. There are now 112 companies under contract in this area, and their activity is operational."
Describing the scope of these companies' work, he said: "Operating companies work in six areas, all of which can help improve energy efficiency. Gas savings certificates are issued in proportion to the savings achieved, and operating companies can benefit from them."
On the economic value of the certificates, Tavakoli said: "To grasp their economic value, it is enough to know that at peak consumption, each cubic meter of gas has traded on the energy exchange at up to about 84,000 tomans in the form of a savings certificate."
On the scheme's benefits for households, he said: "When a home is made more efficient and its gas consumption falls, it may move out of the higher consumption tiers and the wasteful and highly wasteful groups, and as a result that family's gas bill also falls."
The NIGC chief added that about 70% of operating companies' work goes to measures such as upgrading and digitizing boiler rooms, using high-efficiency heaters and improving consumption management systems.
Tavakoli continued: "Alongside these measures, some programs are carried out with support and under the relevant approvals. For example, about 190,000 heaters have so far been distributed across the country, focused mainly on cold-climate provinces and families covered by the State Welfare Organization and the Imam Khomeini Relief Foundation. Investor and operating companies draw on this capacity in their own projects."
Explaining who benefits from efficiency projects, he said: "Successful implementation benefits everyone. Some companies have set up subscriber wallets and pay the profit from savings into these accounts. In effect, when a operating company achieves savings, four parties benefit. First, the government, which no longer needs to build new, costly energy production infrastructure. Second, the consumer, who pays less as consumption falls. Third, the environment, which benefits from reduced pollution from burning fossil fuels. And fourth, the operating companies, a considerable number of which are knowledge-based and earn their income by carrying out efficiency projects."
Savings Certificates as a Financing Tool
On the difference between advance and conventional savings certificates, the NIGC chief said: "An advance savings certificate is essentially a tool to help operating companies and provide the financing they need. These companies sometimes have good ideas and plans for cutting consumption but face limits on investment to carry them out."
Tavakoli added: "Under this mechanism, a certificate is issued in proportion to the estimated savings a project is expected to achieve, and the company can use it as financial backing. The certificate can also be traded on the energy exchange, and the proceeds can help fund the efficiency projects."
He continued: "NIGC has so far distributed a significant number of these certificates, and the process is ongoing. Any operating company that can document the savings expected from its project can use this facility, even if the savings figure is only an estimate at first and the actual amount is assessed after the project is completed."
Your Comment