The National Iranian Oil Company and the Oil Turbo Compressor Company (OTC) will soon sign a contract for manufacturing 14 turbo compressors, which will help save $2.2 billion annually, the head of the Oil Industry Technology and Innovation Park said.
“A huge amount of associated petroleum gas is burned in the country annually. The use of domestically-made turbo compressors to help collect flare gas will save a lot of money,” Esmaeil Kefayati was also quoted as saying by the Oil Ministry’s news agency Shana.
According to the official, OTC has also voiced its readiness to manufacture compressors for pressure booster platforms of the South Pars Gas Field.
Compressors are used in oilfield facilities to maintain or boost gas pressure as it moves along the pipelines to the supplier and final consumer.
APG, or flare gas, is gas dissolved in oil. It is a mixture of hydrocarbons obtained from oil extraction and separation processes. The gas can be utilized in a number of ways after processing: as feedstock for the petrochemical industry and in gas distribution networks.
APG collection is an important safety measure at many oil and gas production sites, as it prevents industrial plant equipment from over-pressuring and exploding.
Collecting APG from oil and gas fields is a priority of the Oil Ministry in the framework of the policy to safeguard the environment, curb the loss of national wealth and create jobs.
Iran has made verifiable progress in using flare gas for generating electricity and feeding refineries and petrochemical plants. Reports indicate the government has so far invested $5 billion in eco-friendly projects.
However, despite the progress, Iran has the highest rate of energy waste in the form of APG in the Middle East and ranks third in the world in terms of gas flaring after Russia and Iraq.
Last year, NIOC signed 28 contracts with Iranian companies to collect APG in Khuzestan’s oilfields.
APG collection projects seek to prevent gas flaring, preserve the environment, create added value from gas collected from the fields and provide sustainable feed to petrochemical companies.
Foreign Investment
Referring to foreign interest in investing in Iran, Kefayati said Russia, China,and Qatar have expressed their willingness to make investments in Iran.
The official added that $750 million should be allocated to projects for the revival of oil and gas wells, and the Russian companies are keen to invest in these projects.
He revealed that the country is also holding negotiations with a big Qatari bank on investment in this sector.
Kefayati said several contracts will be signed in the near future and local knowledge-based companies will cooperate to increase production from oil wells.
NIOC is ready to conclude agreements with knowledge-based companies to enhance the production of 750 oil and gas wells across the country.
NIOC is determined to create opportunities for startups and pave the way for knowledge-based firms so that they can bolster different sectors of the oil and gas industry, especially those active in manufacturing pipes, turbines and compressors.
Deals worth $100 million were clinched with universities and technology-driven business owners in 2021 and more contracts will be drawn up soon.
NIOC has completed the construction of a new technology park in Shahr-e Rey in southern Tehran, indicating that it plans to support startups and university-based firms in oil-related industries.
The tech park is working on injecting state-of-the-art technology into the domestic petroleum industry and enriching the industry with the know-how generated by universities and research institutes.
It plans to host and support knowledge-based companies and startups for developing smart ideas to upgrade petroleum technologies, develop markets, create jobs and boost their capacities in the key sector.
