Iran's gas production facility on the Persian Gulf

Iran's Factories Suffering From Natural Gas Shortages

Friday, 12/23/2022

Cement factories in Iran face serious problems due to lack of natural gas and other fossil fuels in winter, an industry insider told ILNA news website in Tehran.

Ali-Akbar Alvandian, secretary of cement producers’ association told the website that natural gas flows to many factories have been reduced and the alternative fuel, mazut, which is a dirty variety of diesel is also hard to procure.

Iran, which has the world’s second largest natural gas reserves is unable to meet domestic demand, especially in cold and hot months when energy consumption rises to its highest levels.

Power generation stations also receive less gas and resort to burning the highly polluting mazut, which has blanketed Iranian cities in a thick layer of pollution in recent weeks. As a result, the government has restricted mazut shipments to cement and other factories.

Lack of natural gas also hurts Iran’s petrochemical industry, which is a significant source of export earnings.

Iran needs around $40 billion of investment and Western technology to boost its gas production, which has been gradually falling. At the same time due to extremely low prices for consumers, gas and electricity usage increases by around 6 percent annually.

Without resolving its disputes with Western powers, Iran would not be able to provide the investment and acquire the technology needed for revitalizing its natural gas production.

More News