Iran's Gas Consumption Continues to Rise, Raising Concerns for Future Supply


(MENAFN) The domestic and commercial sectors in Iran saw a six percent increase in gas consumption during the past Iranian calendar year, according to Mohammad-Reza Joulaei, the head of the Dispatching Department at the state-run National Iranian Gas Company. This increase in gas usage has caused restrictions in other sectors, including major industries, power plants, and petrochemical feed during peak times.

The imbalance between Iran's natural gas production and consumption has been a growing concern. Reza Padidar, the head of the Energy Committee at the Tehran Chamber of Commerce, Industries, Mines, and Agriculture, warned about this issue back in January. Due to the fact that the South Pars gas field currently accounts for 70 percent of the country's natural gas production, the current trend of consumption and the lack of investment in this field may lead to a severe imbalance between supply and demand in the coming years.

Despite being the third-largest gas-producing country in the world and having the second-largest natural gas reserves, Iran's gas consumption is twice as much as that of the European Union, according to official data. Furthermore, during the cold season, more than 80 percent of the 870 million cubic meters of gas produced in the country is used by the domestic and commercial sectors.

Padidar noted that high-consuming households use four to five times more gas than regular consumers, accounting for most of the above-mentioned consumption. He suggests adopting price reform mechanisms as an effective way to deal with such subscribers. An effective tiered pricing policy for high-consuming subscribers is the model that will encourage these people to modify their consumption patterns, he added.

In conclusion, the continued rise in gas consumption in Iran raises concerns about future supply and highlights the need for effective policies to address the issue. The adoption of price reform mechanisms and an effective tiered pricing policy for high-consuming subscribers can help modify consumption patterns and reduce the burden on the country's natural gas supply.

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