Developing natural-gas-supply security to mitigate distribution disruptions: A case study of the National Iranian Gas Company

Abstract

Stable natural-gas supply and reduction of distribution disruptions play a crucial role in the socio-economic wellbeing and support sustainable development. The socio-technical nature of disruption compels implementation of an interdisciplinary perspective using a lens of supply-chain management. In this manner, disruption drivers are present in the internal, network, and environmental categories. Further, a quantitative method is necessary to evaluate and minimize the occurrence and effect of disruptions by promoting capability development. Therefore, natural-gas-supply security (NGSS), as a hierarchical and multi-dimensional construct, is considered to develop these capabilities. The effect of NGSS on mitigating gas-distribution disruptions, which is based on the contingency theory, is investigated to shed light on what a company should do to mitigate disruptions. Structural equation modeling is also applied to analyze the data collected through a survey questionnaire in Tehran Province Gas Company. The results show that NGSS, in the context of disruption mitigation at the company level, consists of three main dimensions: availability, infrastructure, and governance. The findings suggest that availability can be achieved by not only a sufficient supply but also efficient energy use. Further, behavioral and technological changes are essential. In addition, policies and regulations are not sufficient to develop governance; thus, structure, systems, and monitoring should be emphasized. The conclusion of this study provides an empirical basis and some insights into capabilities that aim to mitigate disruptions. These capabilities can provide reinforcement to transparency, trust, risk-management culture, and integrated supply–demand approach to prevent fluctuations in gas availability, thus promoting infrastructure that deals with environmental sustainability and subsequently addresses disruptions.