25 October 2025 - 19:15
  • News ID: 666237
Gas industry needs $42b in investment

SHANA (Tehran) – Iran’s gas industry will require about $42 billion in investment by the end of the Seventh Development Plan, a senior official said, emphasizing that the sector seeks not only financial input but also innovation, management expertise, and stronger international connections.

Mansoureh Ram, director of investment and business development at the National Iranian Gas Company (NIGC), said Saturday during the first “Investment Dialogue in the Gas Industry” meeting that the goal of the event was to create a forum for open discussion among energy stakeholders rather than one-sided presentations.

“The purpose of this meeting is to provide a space for dialogue and the exchange of views among energy investors and operators so that we can benefit from the experiences and insights of professionals in this field,” she said.

Ram stressed that achieving the goals of the Seventh Development Plan will require more than financial resources. “The NIGC aims to attract investments that bring not only funding but also communication networks, innovation, and managerial know-how to the gas sector,” she said.

Need for New Financing Models

Given the vast scale and complexity of Iran’s gas industry, traditional financing models are no longer sufficient, Ram said. “In recent years, we have worked with the Iran Energy Exchange to introduce new tools, including commodity deposit certificates and gas trading mechanisms,” she added. “However, we should not limit ourselves to these and must move toward developing hybrid structures and new partnership models with investors.”

 Public-Private Collaboration

Ram noted the growing global trend of linking the energy and financial sectors, which has generated long-term stability and profitability for stakeholders. “This meeting is an opportunity not only to identify capacities but also to hear the concerns of industry players and find common ground,” she said.

She emphasized that gas sector companies are not merely operational entities but also play a strategic role in business and infrastructure development. “By pursuing innovative financing methods, we can secure sustainable benefits for the industry, investors, and society through improved energy security and economic growth,” Ram said.

She thanked investors and participants for their engagement. “The presence of economic players at this event is not accidental—it reflects trust and interest in the gas industry,” she said. “We hope to build the foundations for a long-term partnership. Without trust and cooperation, no investment can flow, and this gathering can mark the beginning of that collaboration.”

 Strategic Priorities

Ram said NIGC’s key objective is to design joint and sustainable business models that distribute risk fairly and attract both domestic and foreign investment. “Playing an active role in energy trade and moving toward establishing Iran as a regional energy hub are major goals under the Seventh Development Plan,” she said.

She added that optimizing energy consumption remains one of the company’s top priorities. “Achieving this will allow us to meet new domestic and international demand. Although the NIGC does not directly execute projects, it closely monitors and supports them due to their strategic importance,” she said.

According to Ram, the company’s overarching strategies are based on four main pillars: improving efficiency across the value chain, strengthening governance and enterprise roles, enhancing resilience, and developing strategic partnerships. Financially, the focus is on diversifying funding sources and optimizing costs.

 Investment Breakdown

Based on NIGC’s estimates, the total investment needed for the gas sector through the end of the Seventh Development Plan amounts to $42 billion, Ram said.

This includes roughly:

 $18 billion for refinery projects,

 $11 billion for transmission projects,

 $1.6 billion for network reinforcement,

 $1.4 billion for storage projects, and

 $10 billion for distribution and smart infrastructure development.

Funding will come from three main sources: government allocations, NIGC’s internal revenues, and private-sector investment through the capital market and innovative financial instruments.

“All these projects have been classified into eight investment groups and compiled in a comprehensive prospectus for investors,” Ram said. “Feasibility reports have been finalized and are ready to be presented.”

She expressed optimism that with modern financial models and the active participation of domestic and foreign investors, the country can accelerate the sustainable development of its gas industry.

News ID 666237

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