Iran’s Steel Production To Be Cut Dramatically Amid Gas Shortage

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.