January 18, 2022

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Oil Ministry calls on industries to invest in gas sector

Oil Ministry calls on industries to invest in gas sector – Tehran Times

TEHRAN – Iran’s Deputy Oil Minister for planning Houshang Falahatian has called on the country’s major industries especially the steel industry, to invest in gas sector development projects, Shana reported.

Falahatian has criticized the imbalance of development between oil and gas industries and noted that the country’s gas sector currently requires over $80 billion on investment.

According to the official, if the current trend continues, the natural gas shortage in the country during the cold months of the year will increase from 200 million cubic meters per day to about 250 million cubic meters in the Iranian calendar year 1404 (begins in March 2025) and more than 350 million cubic meters in 1410 (starts in March 2031).

Stating that the study of gas consumption in the steel industry over the past four years shows an annual growth of about 13.7 percent, Falahatian added: “This is while the average annual growth of gas consumption in the petrochemical and cement industries in the said period, has been 8.1 percent and 5.5 percent, respectively, and the average growth of natural gas injection into the national gas network was 5.2 percent.”

The data for gas consumption in the steel industry indicates that this industry has a larger share in the country’s total gas demand compared to other major industries and natural gas has played an effective role in the development of this industry, according to the official.

Falahatian stated that maintaining and increasing gas production in the country requires more than $80 billion of investment in the gas industry, so the stability of gas supply to major industries, especially steel, requires the cooperation and participation of these industries.

Of the required $80 billion, $23.6 billion is needed for increasing pressure and stabilizing the production of the active gas fields, while $36.4 billion is required for the development of new fields, $8 billion is needed for the development and improvement of gas refineries, $1.2 billion is needed to collect flare gases, and finally, $3 billion to develop gas storage in fields, $6 billion for pipelines and stations, and $2 billion to optimize infrastructure, the official explained.

EF/MA



Original News : https://www.tehrantimes.com/news/468460/Oil-Ministry-calls-on-industries-to-invest-in-gas-sector

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