Investment projects in gas industry moving toward value creation

SHANA (Tehran) – The CEO of the National Iranian Gas Company (NIGC) emphasized the need to reform approaches to attracting investment, saying the company’s investment and business team has carefully reviewed and assessed 68 projects, all of which show strong and reassuring returns.

According to NIGC, Saeid Tavakoli said Wednesday in a video address to the first technical meeting on investment and business management with subsidiaries, hosted by Hormuzgan Gas Co., that prioritizing and implementing part of these projects based on national capacity could open an important path for generating added value in the country’s energy chain.

He said strengthening and correcting investment approaches is essential, adding that, as is standard worldwide, the gas industry must make maximum use of capital and resources outside the government sector. “This will only be possible if investment risks are accurately, logically and fairly shared between investors and project owners,” he said.

Proper Risk Sharing as the Key Principle

The deputy oil minister said proper risk distribution is the most important principle in forming investment partnerships. “Even in the smallest business deals, if one side tries to shift excessive risk to the other, the relationship breaks down,” he said. “Correct risk sharing is the first condition for success.”

Tavakoli added that every investor seeks both reduced risk and reasonable profit, but noted that due to shortcomings in certain methods and the complexity of investment processes, capital has rarely flowed into productive or infrastructure sectors. As a result, many investors pursue quick-return activities that involve lower early-stage risk.

Pointing to the attractiveness of the NIGC’s assessed projects, he said the team’s review of 68 proposals shows notable and meaningful returns. “There is confidence that any project undertaken under the company’s contract frameworks will achieve favorable results and ensure investor benefits,” he said.

Making Full Use of Existing Mechanisms

Reviewing the company’s successful experiences with various contract models — including one of the nation’s largest BOT projects — Tavakoli said there is no need to create new mechanisms. “We can properly and fully use the existing tools and frameworks,” he said. He added that holding specialized meetings can enhance staff expertise so each person becomes an ambassador for investment in the gas industry.

Referring to 1404 (2025–26) being designated as the “Year of Investment for Production” by the Leader, Tavakoli stressed that although much of the company’s work is service-oriented, NIGC’s activities are inherently productive. “When you build a pipeline, construct a compressor station or expand a distribution network, you are producing a product that drives development — and this production is impossible without investment,” he said.

He added that maintaining sustainable and balanced growth in the energy sector will provide more reliable benefits for consumers, especially industries and production units. “We hope these seminars will create added value for the gas industry and strengthen the path toward investment-driven development,” he said.

News ID 983078

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