NIOC Managing Director Hamid Bovard said Iran has broken gas production records seven times in the past year, but still faces an energy imbalance. Talking about the signing signing with Imidro, Iron Company and Mapuna for the development of Halegan and Shahini gas fields, he called the agreement “unprecedented” and a strategic move for the country’s industry.
Bobbard said several proposals have been submitted to the field over the past year, with steel companies (as the leading gas consumer) playing a key role in Iran’s economy. He added that early exploitation of a relatively new field is expected to increase production, with gradual production beginning within a year. The plan targets 35 million cubic meters per day and could be processed at the Fajr Jam refinery.
The oil chief noted that the industry, mining and trade ministries are helping steel makers fit into the project. The memorandum has yet to go into a formal agreement, but he said future negotiations will be pursued seriously. Bovard added that the same model could be expanded to supply gas to petrochemical companies.
He also announced plans for another development memorandum with Esfahan Steel Co. in Madar gas fields.
Mohammad Akajanro, representative chairman of Imidro, said steel producers are pinning their hopes on such gas investments. He expects Iran’s installed steel capacity to reach more than 52 million tonnes, reaching 55 million tonnes by the end of the year, but annual production is expected to remain below 32 million tonnes due to energy shortages.
“This is a huge loss for the country,” Aqajanlou said, noting that over 70% of steel output supplies other industries. “Without gas, most of the industrial chain is disrupted.”
He added that steel and mining companies will simultaneously face electricity and gas shortages, leading to lower profit margins, halting production and lower return on investment. “This memorandum is the beginning of a considerable effort,” Aqajanlou said. “With cooperation from the Ministry of Oil, we want to take an effective step.”
MNA/shana.ir