Ministry of Oil and Private Sector Meet to Address Winter Gas Supply and Energy Issues
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Tehran Times
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Ministry of Oil and Private Sector Meet to Address Winter Gas Supply and Energy Issues

A consultative meeting was held on Tuesday dedicated to ensuring a stable supply of natural gas during the cold period, as well as discussing the challenges facing the energy sector and their impact on the country's economic and industrial activities. Participants included Hamid Bavard, Deputy Minister of Oil; Said Tavakoli, CEO of the National Iranian Gas Company; Mohammad Sadeghi Azimfar, CEO of the National Iranian Oil Refining and Distribution Company; as well as the President and members of the Tehran Chamber of Commerce and Industry, representing the mining and agricultural sectors.

According to SHANA, the main focus of the meeting was on how the private sector can contribute to solving the energy sector's problems, demand management, strengthening gas supplies, and participating in decision-making and regulatory processes.

The Acting Minister of Oil welcomed the involvement of specialized associations and private sector actors in policy development, future energy planning, and enhancing the country's energy diplomacy. He emphasized that private sector participation is necessary not only for project implementation but also for shaping vision, decision-making, and creating regulatory frameworks. Furthermore, he called for cooperation to strengthen interaction and advance national goals in energy diplomacy.

Bavard invited private sector representatives to present operational plans for energy consumption management, including innovative solutions and software, and stated that the Ministry of Oil welcomes any proposals for direct use of network gas in production and economic projects. He stressed that industries must participate in planning to reduce fuel consumption, as maintaining the country's energy sustainability requires joint efforts from all sectors. He noted that current circumstances are not normal, and energy issues cannot be viewed through the lens of the past.

He stated that all pillars of the country must cooperate to manage consumption, increase reserves, and ensure sustainable energy supply. The Minister of Oil reported that the ministry is making round-the-clock efforts to restore lost gas production capacity so that the country can return to its previous production levels as quickly as possible. Compensating for lost capacity requires effort and cooperation from all sectors, and besides measures within the Ministry of Oil, assistance from other bodies, industries, and the private sector is critically important to overcome the current situation.

Bavard also mentioned the need to correct some past decisions regarding energy management and stated that all available capacities should be used to reduce consumption, with numerous demand management programs and favorable fuel storage conditions on the agenda.

Highlighting readiness for the cold season, he noted that owners of major industries, especially in steel and energy-intensive industries, must participate in implementing saving projects and utilize their capacity to reduce consumption.

Said Tavakoli, CEO of the National Iranian Gas Company, highlighted the potential of the private sector in developing gas trading, noting that private companies can help diversify supply sources by entering the field of importing gas from neighboring countries. The National Iranian Gas Company is ready to support such companies and issue the necessary permits in accordance with current rules and mechanisms. He urged private sector participants to engage in optimization and gas trading projects, pointing out suitable legal and economic opportunities for ESCO companies and gas import development. These opportunities must be realized with the participation of qualified structures and investors to strengthen the country's energy security and gas supply sustainability.

Regarding the latest status of gas production and supply, Tavakoli reported that prior to recent incidents, the country faced a daily deficit of 250–300 million cubic meters of gas during the cold days of the year. However, due to enemy attacks, 230 million cubic meters of the country's gas production capacity were lost. Immediately after the incident, meetings on integrated management were held at the Ministry of Oil to restore damaged capacities. Thanks to the round-the-clock efforts of colleagues, about 40 percent of the lost capacity has already returned to operation, and part of the gas condensate production capacity has been restored. He noted that about 130 million cubic meters of lost capacity remain non-operational due to equipment damage and upstream processing units, and their restoration will require time and specialized equipment. Despite the scale of the damage, the stability of the country's gas network was maintained, and even in the first hours after the attack, the network did not face widespread disruptions. This demonstrated the efforts and coordination of all participants in the gas supply chain, from extraction to the end consumer.

He also mentioned damage to gas network facilities during the third declared war, particularly at pressure reduction stations and gas distribution facilities, and reported that the gas network remained stable in various regions, with emergency measures taken in cases like Marivan and Kamyaran to stabilize the network. Despite the 130 million cubic meter reduction in production capacity, no restrictions on gas supply to the country's industrial and production facilities have been imposed so far, which is a result of integrated energy management and cooperation between responsible bodies.

Tavakoli emphasized the importance of consumption management and prioritizing gas use for the upcoming winter. He noted that the current year presents exceptional conditions for energy supply, and all structures and stakeholders must plan for the winter based on realistic data and figures. Given that gas accounts for approximately 73 percent of the country's energy balance, he stated that the wide dependence of various sectors—from industry and power plants to residential areas and remote regions—has doubled the need for attention to network stability. He clarified that, contrary to public opinion, gas network stability is not a constant problem but is constantly affected by changes in production conditions, consumption, and air temperature. If the cold regime of 1403 repeats and prolonged cold periods continue, gas consumption in the residential and commercial sectors could exceed 600 million cubic meters per day. Therefore, planning for consumption management and maintaining fuel reserves must begin now.

He also discussed measures taken to develop energy service companies, noting that the implementation of legal provisions of Article 46 of the Seventh Development Plan Law and the Cabinet resolution in 1404 created a suitable opportunity for the private sector to enter consumption optimization and help stabilize industrial gas supply. He also considers reviewing gas tariffs after 14 years as one measure. Energy intensity analysis in Iran shows that, unlike many countries, the country's energy consumption has shown an upward trend over the last two decades. A significant reason for this is the aging of heating and cooling systems, as well as non-compliance with building optimization standards. He stressed that high energy consumption is not limited only to high-income populations. In many buildings lacking proper insulation and modern equipment, especially among middle and lower-income populations, energy intensity is high, and measures must be taken to reduce consumption by modernizing equipment and improving construction standards.

Referring to initial results from implementing gas consumption optimization projects, he reported that in one project implemented in Isfahan province, replacing brick furnaces with new technology led to a reduction in gas consumption per ton of brick from approximately 300 cubic meters to 27.4 cubic meters. There are also significant opportunities for reducing consumption in animal husbandry and poultry farming, and energy service companies can decrease gas consumption and strengthen production stability through equipment modernization and process optimization.

He also mentioned measures to ensure alternative fuel in some areas, noting that in the provinces of Gilan and Mazandaran, some bakeries were able to use secondary fuel so that their production and services would not stop in case of potential gas restrictions.

Mahmoud Najafi Arab, President of the Tehran Chamber of Commerce and Industry, emphasized the need to utilize the private sector's potential in managing energy imbalance and called for expanding fuel storage, gas supply, and private sector participation in oil field development. He stated that the private sector is ready to cooperate with the Ministry of Oil on consumption management, energy supply, and overcoming upcoming crises. Stressing the need for energy consumption control, he added that the potential of private sector associations should be used to propose solutions such as optimizing gas heater consumption and managing household consumption. Naturally, the implementation of these programs must take into account the economic interests of the private sector, as projects without economic justification cannot continue or be effectively implemented.

He also pointed to the need for energy consumption management in commercial and retail centers and suggested revising consumption models and operating hours of shopping malls, drawing on the experience of other countries. Najafi Arab noted that the residential sector accounts for the largest share of gas consumption and stressed the need for serious attention to reforming the consumption model in this sector. To overcome current conditions, it is necessary to achieve the use of alternative fuels in cooperation with relevant authorities. Furthermore, companies and industrial enterprises should start replenishing liquid fuel reserves right now and not postpone fuel supply until a crisis occurs.

He emphasized the need to study gas import solutions and proposed holding joint meetings between the Ministry of Oil and the private sector to examine the possibility of gas imports or using other energy sources so that the country faces minimal curtailments in the cold season. Pointing to the importance of stable energy supply in the north of the country, he added that the provinces of Mazandaran, Gilan, and Gilan play an important role in protein production, so the stable energy supply of these regions must be seriously considered in planning. Najafi Arab also mentioned the potential for private sector participation in oil and gas field development and stated that groundwork must be laid for the effective presence of the private sector in field development and operation projects. To this end, it is necessary to study and eliminate barriers to competition and participation of private and state companies in tenders so that the investment potential and technical capability of the private sector can be utilized in line with national interests.

At the meeting, some representatives of the Tehran Chamber of Commerce and Industry also presented their views on private sector cooperation with the oil industry, demand management in the energy sector, fuel supply to certain enterprises, including Snap and Tapsi, and the need to develop the compressed natural gas (CNG) industry.

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Iranian Oil Minister in Moscow Discussed Trilateral Energy Cooperation and Gas Exchange with Russia via Azerbaijan
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Iranian Oil Minister in Moscow Discussed Trilateral Energy Cooperation and Gas Exchange with Russia via Azerbaijan

Hamid Bavard, the acting Minister of Oil, made a statement on the position of the Islamic Republic of Iran at the 28th meeting of the Gas Exporting Countries Forum. During this event, he held bilateral and multilateral consultations aimed at strengthening Iran's cooperation with other countries possessing energy reserves.

According to an IRNA report, Hamid Bavard continued the line of contacts and trilateral interaction between Iran, Russia, and the Republic of Azerbaijan, which was previously conducted at the level of the heads of state of these countries in Turkmenistan.

The trilateral meeting involved the acting Minister of Oil, the Russian Minister of Energy, and the Minister of Energy of the Republic of Azerbaijan. The parties discussed ways to strengthen partnership in the energy sector and increase efficiency in gas market presence.

Bavard, Sergey Tsivilev, the Russian Minister of Energy, and Parviz Shahbazov, the Azerbaijani Minister of Energy, exchanged views on methods for developing trilateral cooperation between Tehran, Moscow, and Baku.

At this meeting, the acting Minister of Oil stated that a general agreement had been reached on gas exchange between Iran and Russia through the Republic of Azerbaijan, and the technical stages of implementing this agreement are currently underway and nearing completion.

Bavard added that he hopes that after the completion of the pipeline gas transmission program implemented by the Russian side through the Republic of Azerbaijan, there will be an opportunity for gas exchange between Iran and Russia in the near future.

During the bilateral meeting with the Russian Minister of Energy, the acting Minister of Oil expressed satisfaction with the development of bilateral cooperation. He noted that the agreement between Tehran, Moscow, and Baku to conclude a contract for gas trade between Iran and Russia is promising news, and efforts to finalize this contract have accelerated.

The meeting was also dedicated to considering the issue of attracting investment from Russian companies for the development of Iranian oil and gas fields. Furthermore, both sides examined existing obstacles to fulfilling agreements reached at the 19th meeting of the Joint Economic Committee of Iran and Russia and discussed solutions to eliminate these barriers.

The Russian Minister of Energy also announced that the next meeting of the Joint Economic Committee of the two countries will be held in Russia.

The Joint Economic Committee of Iran and Russia is one of the key mechanisms for promoting and developing cooperation between the two states in various economic areas. A significant portion of issues concerning energy, investment, trade, and joint project implementation is resolved within this commission.

The 19th meeting of the Joint Economic Committee of Iran and Russia took place in Tehran in Bahman 1404. A wide range of topics was considered, including the completion of the International North-South Transport Corridor, gas transmission from Russia to Iran, as well as the development of cooperation in the fields of space industry, nuclear energy, commercial and economic affairs, finance and banking, customs, industry and mining, agriculture, healthcare, culture and tourism, and science and technology.

Iranian Ministry of Energy introduces 60 measures to ensure electricity supply during winter
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Iranian Ministry of Energy introduces 60 measures to ensure electricity supply during winter

The Iranian Ministry of Energy is implementing 60 operational measures aimed at ensuring stable energy supply throughout the winter and mitigating potential consequences of fuel shortages. According to a representative of the country's energy sector, liquid fuel reserves at power plants remain at a satisfactory level.

Ehsan Zabiakhzadeh stated that over 80 percent of the fuel consumed by thermal power plants is natural gas, and most facilities are designed to operate primarily on gas. Liquid fuel is used as a reserve to enhance grid reliability and compensate for potential gas supply restrictions, he added, citing IRIB.

Zabiakhzadeh noted that gas supplies to power plants and liquid fuel reserves are currently in a favorable position. Liquid fuel reserves are approximately equivalent to the level from a year ago when reserves were particularly strong, and the trend this year has also remained positive so far.

Some storage capacities still need to be filled, but it is expected that the remaining reservoirs will reach full capacity in the coming days and weeks as winter approaches, with the assistance of the Ministry of Oil, he reported.

Nevertheless, Zabiakhzadeh emphasized that maintaining reliable electricity supply throughout the winter will depend not only on initial readiness but also on continuous gas distribution and timely delivery of liquid fuel.

Authorities have designated a roughly 100-day period starting in mid-December as the main preparation window for winter and have coordinated plans with the Ministry of Oil to ensure power plants are supplied with fuel, he added.

60 measures to manage winter restrictions

Zabiakhzadeh stated that attacks, which Iranian officials attribute to Israel and the United States, damaged gas supply infrastructure, leading to a reduction in part of the country's gas supply capacity compared to last year, according to statements from Ministry of Oil officials.

In response, the power sector has developed 60 operational measures to overcome the 100-day winter period with minimal disruptions. He reported that the implementation of these measures is proceeding satisfactorily.

Key steps include timely completion of necessary power plant maintenance, accelerating the development of renewable energy sources to increase electricity generation without consuming fuel, advancing maintenance at the national nuclear power plant for its commissioning at the beginning of the cold season, and optimizing hydropower.

Improving the efficiency of thermal generation is also a priority, Zabiakhzadeh noted. Authorities aim to maximize the use of high-efficiency generating units and reduce diesel fuel consumption, especially in northern Iran, where power plants face a higher risk of fuel supply limitations.

Increased attention is being paid to the maintenance of the power grid and main energy transmission lines compared to previous years, as authorities strive to minimize transmission bottlenecks that could restrict electricity supply in winter.

Energy saving remains a priority

Zabiakhzadeh stressed that coordination between various sectors was vital for managing energy consumption and maintaining a reliable electricity supply throughout the cold season.

He stated that government institutions and public organizations must set an example in energy saving, and all electricity and gas consumers must help manage demand.

Reducing energy consumption can lessen the impact of potential fuel shortages, Zabiakhzadeh added, emphasizing that savings must extend beyond the winter. Even small savings can have a significant impact if they are sustainable and adopted as a long-term practice.

Russia and Africa Discuss Energy Cooperation for Sustainable Development and Common Prosperity
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iol.co.za

Russia and Africa Discuss Energy Cooperation for Sustainable Development and Common Prosperity

In the coming days, on October 27, Moscow will host the Eighth Summit of the Gas Exporting Countries Forum (GECF). This meeting takes place against the backdrop of profound changes in the global economy, growing demand for energy resources, and ongoing volatility in international energy markets. Under these conditions, the Summit provides an important opportunity to emphasize the role of gas as the clean fuel of the 21st century, strengthen interaction between energy producers and consumers, promote a common understanding of sector challenges, and give a new impetus to technological progress for the long-term interests of peoples.

These priorities were also at the center of Russia's recent activities with African partners. The author visited the African Energy Week, which took place in Cape Town from October 12 to 16. As part of the 'Made in Russia' business mission organized by the Russian Export Center, 11 Russian companies presented innovative solutions for the African market. Their joint exhibition showcased equipment for the oil and gas industry, automation systems, pipeline products, and environmentally friendly infrastructure. The Russia-Africa Investment Forum, held concurrently with this event, served as a valuable platform for discussing specific business opportunities.

The interest shown by African partners reflects practical economic needs. Many countries are seeking experience and technologies capable of increasing the efficiency of existing oil and gas fields, ensuring reliable equipment maintenance, strengthening local industrial potential, and preparing a qualified national workforce. In this context, the approaches proposed by Gazprom Neft for developing mature onshore assets are particularly noteworthy. They illustrate how cooperation can go far beyond simply supplying equipment or providing individual services, creating conditions for sustainable business presence that brings new knowledge, employment opportunities, and a significant share of created value to host countries.

The Russian side views this model as especially relevant for Africa, where developing internal capabilities is critical for strengthening economic self-sufficiency and sustainable growth in key sectors. Russia's goal is not merely to participate in individual projects but to form partnerships that allow its partners to expand their own technological and industrial potential.

It is worth noting that the Russian Energy Week was held in Moscow almost at the same time, from October 14 to 16. Discussions in Cape Town and Moscow reflected a shared understanding of the importance of predictable markets, favorable investment conditions, and broader adoption of advanced technologies. In his welcoming address to participants of the Moscow forum, President Vladimir Putin particularly emphasized international dialogue, the security of logistics routes, and the training of qualified personnel for the energy sector. He also defined the upcoming GECF Summit as a continuation of these discussions.

Collectively, these events underscore the growing need for coordinated approaches to energy development and the functioning of the world economy. In a world where energy security, industrial growth, and technological progress are becoming increasingly interconnected, no country can afford to ignore the importance of stable supplies, reliable infrastructure, and constructive international cooperation.

For Africa, these issues are inseparable from the continent's broader agenda. Immense natural wealth contrasts with persistent power shortages that continue to restrict the operation of enterprises, hospitals, schools, and other vital services. According to data from the World Bank and the International Energy Agency, over half a billion people in Sub-Saharan Africa lack access to electricity, accounting for about 85% of the world's population without electricity access. Meanwhile, population growth, urbanization, and production expansion increase the demand for additional generation capacity.

According to OPEC's forecast published this year, Africa's total energy consumption is projected to increase by approximately two-thirds by 2050 compared to 2025 levels. Meeting this growing demand will require significant investment, long-term planning, and a realistic assessment of the energy resources and technologies available to individual countries.

In light of this, natural gas plays an important role in supporting industrialization and improving living standards. It provides a reliable source of electricity, supplies heat for industrial facilities, and serves as raw material for fertilizer and petrochemical industries. Its contribution to expanding access to cleaner cooking solutions is equally significant. By offering households an alternative to traditional biomass, natural gas can help reduce indoor air pollution and improve public health.

Gas power plants can also complement renewable energy sources, providing the flexibility needed to balance fluctuations in solar and wind power generation. Where natural gas replaces coal, using efficient equipment combined with effective methane leak detection and control can significantly reduce the environmental impact of energy production. However, realizing these benefits requires more than just having gas. Pipelines, receiving terminals, and distribution networks must connect production sites with domestic consumers, industrial centers, and regional markets.

Russia believes that the transition to a cleaner economy must take into account the actual capabilities, economic circumstances, and development priorities of each country. An accelerated cessation of using traditional energy sources before adequate replacement capacity, energy storage systems, and supporting infrastructure are available risks deepening shortages, increasing electricity tariffs, and undermining energy security. Assessments by international industry organizations, including OPEC and GECF, indicate a sustained significant demand for hydrocarbons in the long term, while simultaneously highlighting the risks of insufficient investment in production.

Therefore, climate goals should be pursued through technological progress, energy efficiency improvements, and the gradual development of corresponding infrastructure, while ensuring the availability and affordability of essential energy services. A successful energy transition must be measured not only by environmental indicators but also by the ability to support economic development, strengthen energy security, and improve the quality of life.

Russia possesses significant experience that it is ready to share with its African partners in addressing these challenges. Its own energy sector has demonstrated that reliable supply depends not only on abundant natural resources but also on advanced technologies, modern infrastructure, and the ability to develop solutions in complex geographical and climatic conditions.

The Russian side is prepared to cooperate in geological exploration, development of complex reserves, gas processing, liquefied natural gas supply, as well as the construction and modernization of power plants. Russia also has extensive experience in managing interconnected electrical grids, utilizing hydropower, and expanding power supply to remote settlements.

For Russia, the value of such cooperation lies in the long-term results it yields. Technologies and expertise must help African countries develop their own industries, strengthen their energy security, and create a solid foundation for sustainable economic growth. This means paying special attention to skills development, technology transfer, local production involvement, and training national specialists who can operate, maintain, and further develop the constructed infrastructure.

An example of such a comprehensive approach is the El Dabaa Nuclear Power Plant, currently being built by Rosatom in Egypt. Its four generating units with a total capacity of 4,800 megawatts are intended to make a substantial contribution to the country's energy supply and support its industrial base for decades to come. The project includes not only the construction of the plant but also the supply of nuclear fuel, operational support, and personnel training.

Russia also sees great potential for cooperation with South Africa in the gas sector, grid modernization, improving the efficiency of existing thermal power generation, and applying nuclear technologies. Such cooperation must be guided by South Africa's own development priorities and needs, including imperatives for economic growth, job creation, and ensuring access to affordable utilities.

The most productive partnerships are built on a clear understanding of all parties' interests. Each country has its own economic structure, resource base, and development trajectory. Respecting these differences, combined with a willingness to find practical solutions, lays a solid foundation for long-term cooperation.

Ultimately, energy cooperation is about people. Building a power plant, developing a gas field, or supplying advanced industrial equipment is important, but the benefits of such projects must extend far beyond the infrastructure itself. They must leave behind skilled engineers, stronger local industries, expanded employment opportunities, and better prospects for future generations.

This is why Russia places particular emphasis on education, professional training, joint research, and strengthening ties between universities. Our African partners must have not only access to modern technologies but also the knowledge and capabilities necessary for their independent operation, maintenance, and development. We believe that true partnership is based on mutual respect, shared responsibility, and recognition of each nation's sovereign right to determine its own path of development.

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