The Estimation of Compressed Natural Gas (CNG) Application Function in Industry Section of Country

Planning for optimization of natural consumption in the country requires foreseeing and forecasting the long term demand for natural gas. Natural gas, as one of the energy vectors in Iran, has a unique position. Having the second richest reservoir of natural gas in the world ,plus , a specially natural gas environment , Iran has propounded natural gas as the better energy source in the country. The industrial sectors, as the most productive economic sector of every country has special position in that country and undoubtedly without iis development economics dynamics and economic growth and development will not take place. In addition industry is one of the most important DEMARDERS OF natural gas. There fore it has been tried in this paper to examine the demand for natural gas in the industrial sector. To this end, while analyzing the theoretical side of the subject, the effective factors for natural gas demand in the industrial sector will be examined, and then, with the use of autoregressive distributed lag (ADRL) and error correction model (EME), the long and the short run, effects would be analyzed through time series. The results show that the real prices of natural gas and electricity have no effect on the consumption of natural gas in the industrial sector. Also in considering the cross elstiety of the natural gas to the real prices of the oil products the gainted results show that natural gas and oil products are complementary goods. In addition, amongst other influencing factors on demand for the natural gas in the industrial sector in the value added in that sector.