Iran’s new Oil Minister articulates short-term strategy for addressing energy imbalance
Date
8/25/2024 4:29:44 AM
(MENAFN) Iran’s newly appointed Oil Minister Mohsen Paknejad has articulated his short-term strategy for addressing the country's energy imbalance. During his first day in office, Paknejad emphasized that his primary focus will be on resolving the energy issues without resorting to increasing the prices of energy carriers. Instead, he plans to leverage alternative fuels, such as gas, as a key component of his approach.
Paknejad stressed that he aims to implement non-price solutions, which will involve collaboration with other organizations and ministries. His goal is to achieve a balance between production and consumption without raising gasoline prices. He has already submitted detailed operational plans to the parliament and specialized committees, although he acknowledged that completely resolving the energy imbalance in the short term might be challenging. Nonetheless, these measures are expected to somewhat mitigate the issue.
In his address, Paknejad also acknowledged the contributions of the 13th government to energy diplomacy, including the gas swap deal with Turkmenistan. This initiative, which involves importing gas from Turkmenistan, is anticipated to alleviate some of the domestic gas imbalances, as part of the gas will be used within Iran.
Regarding gasoline shortages, Paknejad clarified that price adjustments are not being considered as a solution. He also noted the need to revise the financial relationship model between the government and the National Iranian Oil Company (NIOC), which has been in place for many years. The minister is exploring new financial models, including utilizing resources from major gas-consuming industries, such as petrochemicals, to support the development of the oil industry’s upstream sector.
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