An Iranian industrialist says the gas and
electricity shortage will probably lead to a two-million-ton decrease in the
country’s steel production.
In an interview with ILNA on Sunday, Reza
Shahrestani said there is a severe gas shortage in steel companies, adding that
the steel industry needs 40 million cubic meters of gas daily, but at present
their consumption has reached 15 million cubic meters per day.
He further added that almost 50% of the electricity
supply for industries has been cut off too.
“Gas shortage has also led to electricity shortage
because the current amount of natural gas does not meet the needs of power
plants to produce electricity,” he underlined.
“It seems that the gas and electricity shortage
will be more severe next year and if it continues like this. It will have a
tangible impact on the production rate of all industries,” said the member of
board of directors of the Steel Manufacturers Association.
“In my opinion, the people, who are in office at
the oil ministry, are not up to the task, so we are witnessing inefficiency in
all fields,” reiterated Shahrestani.
While the Islamic Republic officials predicted a
bad winter in Europe, offices and schools in Iran have been closed for days due
to a serious natural gas shortage.
Iran has failed to invest in its gas production
sector, although it has the world’s second largest reserves. The distribution
network also needs upgrades as more than 25 percent of the gas is lost during
transfer.