The project to collect associated petroleum gas at Amir Kabir Petrochemical Plant in Mahshahr, Khuzestan Province, is in the final stages.
Upon completion by summer, the APG will be used as feedstock for the plant to produce a variety of products, ILNA reported.
Amir Kabir is Iran's largest manufacturer of petrochemicals and polymers, producing heavy polyethylene and linear and light polyethylene.
Its products are used to make pipes, cables, plastic bags, barrels for chemicals and food, synthetic rubber and resistant polymers.
APG is natural gas found with deposits of petroleum. It is often released as a waste product and burnt off as flare gas.
Flaring is an important safety measure in oil and gas production sites, as it prevents industrial plant equipment from over-pressure and explosion. However, burning high levels of APG is a major source of pollution as it pours methane, ethane and propane into the atmosphere.
Iran has the highest rate of energy waste in the form of APG in the Middle East and is third in the world in terms of gas flaring after Russia and Iraq.
However, it has taken baby steps in collecting flare gas in the past decade and prevented the flaring of 12 billion cubic meters of APG since 2008.
According to a report by the Majlis Research Center, approximately 17 bcm of gas is flared and wasted in Iran annually -- $6 billion net loss for the treasury.
Flaring of natural gas contributes to climate change and waste of energy resources. A report by the World Bank shows global gas flaring increased 3% in 2018 to reach 145 bcm, which is equivalent to the total annual gas consumption of Central and South America.
This means gas flares at oil production sites around the world released more than 300 million tons of carbon dioxide into the atmosphere as environmentalists and climate activists pile pressure on governments to walk the talk on reducing their carbon footprints.
Output Rises
Amir Kabir Petrochemical Plant broke its polymer production record by 21% in the first 11 months of the current calendar year that ends next week.
According to the company, production of polymers surpassed 1.2 million tons in the period, higher than in the previous years.
Last year, the company reported $100 million in profit despite the unilateral US sanctions on key industries.
Donald Trump announced tough new restrictions on Iran in August 2018, targeting key industrial and financial sectors. In the May of that year the beleaguered US president tore up the landmark 2015 nuclear deal Iran had signed with the six world powers and in November Washington imposed a second round of sanctions, targeting the energy sector.
The petrochemical industry has played a key role in domestic economic growth as it creates value-added. There are 56 petrochemical companies in Iran producing 66 million tons of goods.
The National Petrochemical Company has reported that as new petrochemical plants open, annual petrochemical output will reach 100 million tons by 2022.
Petrochemicals constitute more than one-fourth of Iran’s non-oil exports destined to 30 countries, namely neighbors, China, India, Southeast Asia and Europe.
