Speaking at a gathering of professors and students at Sharif University of Technology during Research Week, Reza Noshadi addressed the issue of gas supply-demand imbalance.

He noted that nearly half of Iran’s known gas reserves have been developed and a significant portion has already been consumed.

“If consumption continues at this rate, our gas resources will not last long,” the official warned. 

Noshadi highlighted that some gas reservoirs are entering the latter stages of their lifecycle, leading to reduced output. Despite this, consumer behavior remains unchanged.

He added, “Population growth and economic indicators have not significantly risen in recent years, yet gas consumption has skyrocketed. This cultural trend of excessive and irrational consumption is unjustifiable and a clear detriment to national resources and interests.” 

Missed opportunities in gas export 

Noshadi stressed that the wasteful domestic use of gas prevents its export, which could bring much-needed revenue to the country.

“A small portion of our gas is exported, yet the revenue from this amount surpasses 94% of what is earned from domestic consumption,” he said. 

The official cited a startling comparison: Iran consumes 80% of the gas that China, the world’s economic powerhouse, uses and 65% of the gas consumed by the European Union, despite having a fraction of their populations and industrial capacities.

“This demonstrates our insatiable appetite for wasting this God-given resource,” he remarked. 

'We burned banknotes for warmth'

Responding to critics who advocate for continuously increasing gas production to meet rising demand, Noshadi said, “Our engineers doubled gas production under the harshest sanctions, but instead of appreciating this achievement, we squandered it. In simpler terms, we burned banknotes to stay warm. Today, many industries lack access to gas, yet we still don’t have enough to meet residential and commercial demand.” 

He warned that under the current trajectory, Iran will face year-round gas shortages by the Iranian year of 1405 (2026). 

Solutions to crisis 

Noshadi outlined several measures to address the gas crisis, including smart management systems, optimizing consumption, expanding natural gas storage, boosting gas imports, improving the efficiency of gas-powered systems, retrofitting buildings and factories, promoting alternative energy sources, and implementing pricing mechanisms.

He added, “Encouraging energy-saving behaviors and using price incentives can greatly mitigate the situation.” 

Changing perceptions of gas as a 'Valueless Commodity' 

The CEO criticized the lack of interest among consumers and industries in adopting energy-efficient technologies.

“From households refusing to use high-efficiency heaters to industries ignoring the optimization of outdated systems, the signs of neglect are everywhere. Even greenhouse operations rely on flimsy plastic covers, causing waste far greater than the value of their produce,” he said. 

To change this perception, Noshadi argued for a pricing policy that reflects the true value of gas.

“Affluent households should pay the real price of gas, while subsidies for low-income groups must be maintained. Since residential gas is not a tradable commodity like gasoline, concerns about inflation due to price adjustments are misplaced. Heavy consumers should be penalized, and those who save energy rewarded.” 

Noshadi proposed a phased approach to pricing reforms, allowing consumers time to adapt.

He also emphasized the importance of identifying excessive consumers, such as those in northern tourist regions, using property and banking data.

“By combining incentives and penalties, the savings can be reinvested into national development and improving public welfare,” the official concluded.