Hamid Bovard, managing director of NIOC, said Iran has broken gas production records seven times over the past year, yet still faces an energy imbalance. Speaking on the sidelines of a memorandum signing for the development of the Halegan and Shahini gas fields with IMIDRO, steel companies and MAPNA, he called the agreement “unprecedented” and a strategic move for the nation’s industry.

Bovard said multiple proposals had been submitted for the fields in the past year, and steel companies — as major gas consumers — play a vital role in Iran’s economy. He added that early exploitation of the relatively new fields is expected to increase output, with phased production beginning within a year. The plan targets 35 million cubic meters a day, potentially processed at the Fajr Jam refinery.

The oil chief noted that the Industry, Mine and Trade Ministry has been instrumental in aligning steelmakers with the project. While the memorandum has not yet advanced to a formal contract, he said upcoming negotiations will be pursued seriously. Bovard added that the same model could be expanded to supply gas to petrochemical companies.

He also announced plans for another development memorandum with Esfahan Steel Co. for the Madar gas field, which is expected to help reduce shortages in the steel sector.

Mohammad Aqajanlou, acting chairman of IMIDRO, said steel producers are pinning their hopes on such gas investments. He noted Iran’s installed steel capacity has reached more than 52 million tons and is expected to hit 55 million tons by year’s end, but annual production remains below 32 million tons because of energy shortfalls.

“This is a major loss for the country,” Aqajanlou said, pointing out that more than 70 percent of steel output feeds other industries. “Without gas, large parts of our industrial chain are disrupted.”

He added that steel and mining companies face simultaneous electricity and gas shortages, leading to lower profit margins, halted production and stalled returns on investment. “This memorandum is the beginning of a significant effort,” Aqajanlou said. “With cooperation from the Oil Ministry, we hope to take effective steps forward.”