The state-run Hamdeli newspaper examined Iran’s gas crisis in a report published on December 1. The review addressed several aspects, including outdated infrastructure and mismanagement as major challenges in the gas industry, as well as the social and economic impacts of gas shortages during winter, which have had severely negative effects across all areas.
Iran: A country rich in natural gas, yet in crisis
Iran, the world’s second-largest holder of natural gas reserves, has faced recurring crises in gas supply during cold seasons for years. The National Iranian Gas Company recently yet again “called on people to reduce gas consumption”. Why must a country with such vast reserves contend with annual warnings about consumption? The answer lies in mismanagement, structural corruption, and a lack of long-term planning.
Outdated Infrastructure and Mismanagement
One of the main issues in Iran’s natural gas industry is its outdated and inefficient transmission and distribution infrastructure. Energy loss in Iran’s gas networks is among the highest in the world. Despite substantial revenues from gas sales, there has been insufficient investment in developing gas fields, upgrading equipment, and increasing production capacity. Additionally, sanctions and constraints stemming from mismanagement in attracting foreign investment have exacerbated the crisis.
A significant portion of the country’s gas production is consumed domestically, while industries, power plants, and exports also rely on this resource. This uneven distribution has reduced the production capacity of domestic industries and squandered export opportunities.
Social and Economic Dimensions of the Gas Crisis
In colder regions, people resort to alternative heating methods such as oil or electric heaters, which are more expensive and less safe.
Disruptions in gas supply to industries lead to reduced production and factory closures. This not only lowers GDP but also raises unemployment rates. Petrochemical industries and power plants, as major gas consumers, are among the primary victims of this crisis.
Missed Opportunities in the Global Market
Iran could have earned significant foreign exchange revenues by exporting natural gas to neighboring countries and Europe. However, its inability to meet domestic needs has squandered these opportunities and weakened the national economy.
The use of polluting fuels such as mazut instead of gas in power plants not only threatens public health but has also pushed air pollution in major cities to dangerous levels.
What seems disastrous is the expectation that a regime built on corruption and theft could navigate these social and economic crises effectively.
The gas crisis in Iran is less about resource shortages and more directly a result of corruption, managerial inefficiency, and weak planning.
