Household Gas Supply at the Expense of Industry; Gas Supply to Steel Industries Reduced by Up to 50%

Claims by the Iranian government regarding the uninterrupted supply of gas during winter have been called into question. Recently, the Vice President of the Iranian Steel Producers Association reported a reduction of up to 50% in gas supplied to steel industries, resulting in significant losses. Amin Ebrahimi told the ILNA news agency that new steel units are coming online while there are still issues with gas and electricity supply for existing units, which he described as contradictory behavior. This industry official emphasized that given the existing imbalances and numerous problems, no new permits should be issued for the construction of steel units, yet new units have been operational this year. Alongside this negligence in meeting the needs of industries, Hashem Oraki, President of the Iranian Scientific Energy Associations Union, issued a warning on Monday, January 1, stating, 'If necessary investments are not made, we will lose one phase of South Pars every year starting from 2025.' The website 'Eghtesad Online' also reported on January 3, confirming the gas crisis in industries and unveiling a new crisis, stating: 'While the mining and steel sectors in Iran have faced electricity and gas shortages in recent years, concerns about water shortages for producing steel chain products have intensified, and it seems that mineral industry producers will face many challenges next summer.' The damages inflicted on this sector come at a time when steel industries account for about 30% of the country's gross national product. The website 'Eco Iran' reported on January 4 that last summer, steel industries suffered a $2 billion loss due to power outages. In September of this year, the Vice President of the Energy Commission of the Iran Chamber of Commerce announced that the losses from power outages for industries amounted to $6 billion. Economic experts believe that the energy imbalance is a result of the Iranian government's negligence towards sustainable development and a consumptive view of resources. According to the Iranian Oil Minister, Iran currently ranks first in the world in total oil and gas reserves. According to 2021 data from the U.S. Department of Energy, Iran ranks second in gas reserves after Russia and third in oil reserves after Venezuela and Saudi Arabia. Despite this, due to inefficient management and inability to attract investment for resource optimization, Iran faces a gas supply crisis every year. The alarm for consumption has sounded; gas supply is far away; gas cuts are very close. An energy expert stated: 'We will soon reach a complete gas imbalance.' One step away from a gas crisis in the country; 325 warnings for gas cuts have been issued for offices in Khorasan Razavi. Iran, with the largest energy reserves in the world, is on the brink of facing an energy shortage. The head of the Tehran Chamber of Commerce reported a $4 billion decrease in non-oil exports. The National Gas Company denied the 'halt of gas exports' to Iraq, stating that one of the two 'exchange points' has gone offline.