38% of gas allocated to power plants

SHANA (Tehran) – The managing director of the National Iranian Gas Company (NIGC) stressed the importance of digital transformation, saying 39% of the nation’s gas supply went to industries last year, 38% to power plants, and less than 20% to the residential sector.

Saeid Tavakoli, speaking Monday at an event on developing knowledge-based cooperation for digital transformation in the gas industry, said digital transformation is no longer a choice but a global necessity and reality. “If these changes are not managed in time, we will lose opportunities and face serious consequences for failing to adapt,” he said.

Tavakoli noted that internal and international pressures on the gas industry highlight the need to balance opportunities and threats in this ecosystem. “The experience of the 12-day war and past cyberattacks demonstrated that threats are real and must be managed,” he added.

 Decision-making with All Stakeholders

Tavakoli emphasized that the gas industry extends beyond the NIGC, encompassing all players in the supply chain, including industries, power plants, and residential consumers. “Decision-making must consider all stakeholders,” he said.

He cited a long-standing example from satellite stations: “More than 28 years ago, our technical knowledge of computers was limited, yet the same colleagues have now designed, installed, and launched complex control systems—both hardware and software—without halting station operations. This has enabled daily transmission of 110 million cubic meters of gas, equivalent to the consumption of Tehran Province.”

“This progress shows that technology brings with it new cultures and paradigms of work,” he said. “Digital transformation shapes the behavior of organizations and individuals alike.”

 Hidden Challenge of the ‘Illusion of Knowledge

The NIGC chief warned that two key challenges stand in the way of successful digital transformation: the illusion of knowledge among executive managers and the illusion of execution among knowledge-based companies.

“The illusion of knowledge arises when managers believe they understand all dimensions of the technology ecosystem—software, hardware, and humanware—and create rules based on limited experience,” Tavakoli said.

“Conversely, the illusion of execution occurs when startups and knowledge-based firms enter projects with enthusiasm and confidence but fail to implement their ideas due to operational limitations or lack of real-world experience,” he added.

He said managing these two challenges requires a balance between knowledge, practical experience, and stakeholder cooperation to ensure a sustainable and effective digital transformation in the gas industry. “The purpose of this meeting is to move beyond both illusions—so that managers act realistically, and innovators see their ideas take shape in executable settings,” he said.

 Proposal for a Permanent Secretariat

The deputy oil minister said one of the main goals is to create an effective communication framework between industry and technology players. “We propose establishing a permanent digital transformation secretariat in the gas industry to maintain direct interaction with active companies and assess their real capacities,” he stated.

Tavakoli added that genuine cooperation between government and knowledge-based enterprises can create a multiplier effect. “What truly matters is realism, honesty, and focus on data and capabilities, because the ideas and expertise of tech innovators are intellectual and data-driven seeds that can grow and have real impact in the right environment,” he said.

He also underscored the critical value of data, describing it as “the foundation of innovation and decision-making in the gas industry.” Data, he noted, must be properly valued and managed to unlock its full potential.

“In the end, the goal of this event is to establish effective mechanisms for connecting knowledge, data, and the ideas of technology firms—without the limitations of physical assets—to ensure successful digital transformation in the gas industry,” Tavakoli concluded.

News ID 690764

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