A new opportunity for energy operators

SHANA (Tehran) – Iran’s Seventh Development Plan aims to prevent the daily waste of energy equivalent to 1.285 million barrels of oil, or more than 150 million cubic meters of natural gas — a target that creates an attractive market and valuable opportunity for private sector energy operators and technology firms.

Currently, about 22% of the country’s produced energy is lost across various sectors, including power plants, industries, households, and agriculture. According to Table 10, Article 46 of the Seventh Development Plan, Iran plans to recover 1.285 million barrels of oil equivalent in wasted energy from production and consumption by the end of the plan period — roughly 200 million cubic meters of gas per day, comparable to the output of eight South Pars phases.

Energy recovery in the Seventh Development Plan is structured around both energy consumers and producers. Global experience shows that optimizing energy use and recovery is possible through three main avenues:

1. Technical and technological measures

2. Managerial initiatives, such as developing energy exchanges and consumption management

3. Cultural and behavioral changes, including promoting economic awareness.

A combination of these three areas leads to more efficient energy consumption.

Given this approach, the energy supply chain gains new significance. In this chain, assets and services flow downstream—from resource providers to customers—while financial flows move upstream, from customers to suppliers. Modern supply chain models add three new flows: anticipating customer needs before production, analyzing past data to improve processes, and creating added value for goods and services.

Companies known as “operators” or “energy operators” stand between producers and customers, focusing on data and knowledge to manage these key flows, thereby boosting overall supply chain efficiency.

In Iran’s gas industry, this model is clearly applicable. Operator companies can use data-driven methods to manage information, value, and customer needs — ensuring efficient delivery of gas to end users.

To explain the role and entry of such operator companies in managing gas consumption, Shana held a meeting with Ali-Asghar Rajabi, energy and carbon manager at the National Iranian Gas Company (NIGC), and Sajed Kashfi, deputy for gas consumption optimization at NIGC. Below are key excerpts from the first part of the discussion.

 What is the purpose of creating energy operator companies in the gas sector?

Rajabi: Energy operators entered the gas industry with two main goals. The first is addressing underdeveloped areas such as IT. By analyzing existing data, these firms can forecast consumer behavior and use the insights to improve gas industry systems.

The second goal is enhancing value flows. Across the natural gas supply chain — from production to end use — gas gains value. For example, the value per cubic meter rises progressively across sectors: agriculture, household, kilns, cement, steel, and petrochemicals, reaching about 12,000 tomans in petrochemical plants. Meanwhile, in the energy savings market on October 5, the same cubic meter traded for 17,700 tomans.

Therefore, operator companies position themselves between producers and customers within the value chain. Based on data, they take three main types of action:

1. Technical — optimizing boiler rooms to reduce consumption

2.  Managerial — planning and scheduling equipment usage

3. Behavioral — training consumers to optimize energy use and reduce emissions.

 What is the rationale behind involving the private sector through operator companies in energy-saving projects?

Kashfi: The idea behind forming energy operator companies is to create a link between state-owned gas distributors and consumers — the general public. In many cases, people have greater trust in private entities than in government bodies. These companies, driven by stronger motivation and agility, can create higher added value and efficiency for customers.

Wherever they operate, operators help optimize consumption and enhance efficiency through value creation. Since they are not bound by rigid government regulations, they respond more flexibly to consumer needs, act more quickly, and implement optimization programs faster. Moreover, because their revenue depends on performance, they approach projects with greater drive and accountability — directly improving energy efficiency and customer satisfaction.

 How does the private sector participate in energy-saving projects through operator companies?

Kashfi: There are two main models for private sector participation:

1. Retail Gas Model:

   Under this approach, gas is sold to an energy operator at CGS (City Gate Station) facilities. The operator then manages the retail sale of gas to consumers. Here, the concept of “energy management” becomes tangible. Operators use various means — from advanced technologies to awareness campaigns — to reduce gas use in low value-added sectors (where tariffs are lower) and redirect the saved gas to higher value-added sectors with greater economic benefit.

   If the operator achieves measurable reductions in gas consumption at urban pressure stations, it benefits from the savings, which can be traded on the energy exchange to recover investment costs.

2. Consumption Optimization Model:

   In this model, the operator does not buy or sell gas directly. Provincial gas companies continue to supply consumers, while operators implement energy efficiency programs among users. When gas bills show measurable reductions, the resulting savings are treated as the operator’s financial benefit.

   This structure makes operators effective private-sector partners in achieving sustainable energy savings, reducing resource waste, and stimulating investment in optimization projects.

 What criteria does the National Iranian Gas Company use to qualify operator companies?

Rajabi: The qualification process is based on several main criteria:

1. Official licenses from relevant authorities — a mandatory first step.

2. Financial capacity, since collaboration with NIGC involves large-scale operations. For example, a qualified company must have the capacity to purchase at least 5 million cubic meters of gas per day and maintain adequate financial resources for regular payments.

   This ensures genuine gas savings, allowing released gas to be redirected toward high value-added sectors while operators benefit from price differentials and efficiency gains. Smart systems and precise data tracking ensure transparency, traceability, and continuous improvement.

3. Data analysis capability, as this model relies on consumption data, behavioral patterns, and performance metrics.

4. Networking ability, meaning the company can form cross-disciplinary expert teams. For instance, if it targets energy reduction in brick production, it should engage technical experts in that field; if in poultry farming, it should include agricultural specialists. Such networks ensure that projects are implemented effectively and achieve tangible results.

Kashfi: To qualify, operator companies must demonstrate strong financial resources to buy gas, invest in projects, and manage energy efficiently. Another key requirement is data-driven operation — companies must employ technology-based decision-making tools to manage consumption.

Since operators may not handle every project phase independently, they can form consortia or collaborate with specialized energy firms. Overall, the core criteria for approval are technical capability, financial strength, and a technology-driven, data-centric approach — essential for effective participation in national energy optimization and management initiatives.

News ID 665858

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