Optimal Allocation of Natural Gas in IRAN to Support a Resilient Economy

The optimal allocation of natural gas, as an important source of energy, to different activities is critical for developing a resilient economy. This paper is thus investigating the optimal allocation of natural gas to various sectors based on the needs of a resilient economy.
We first undertake a literature review to develop criteria for prioritizing use of natural gas and then interview a certain number of oil and gas experts, using the Shannon method, to determine the relative importance and quantitative value of major indexes. We chose a sample of 62 experts, based on the Cochran method, and classified our findings through use of the SPSS22 software and applying the t test. We then used the TOPSIS and multi-attribute decision -making technique to prioritize different uses of natural gas and determine the optimal share of each in limited gas resources.
Our results identify the following order in terms of factors to bear in mind in determining the optimal allocation of natural gas to different uses. The most important consideration is the resultant value added, followed by diversification of the energy basket, job creation, strategic requirements, energy security and social justice, as second to sixth important indicators for prioritizing different sectors. The optimal allocation of gas would assign top priority to exports, followed by injection into oil fields, use as feed in petrochemicals, as input in industry and power generation, with the lowest priority assigned to use in the household and commercial sectors.
JEL Classification: O13, C61, C53, D61, D81, Z39, Q41