The first phase of the Gas and Natural Gas Liquid Plant in Khuzestan Province, named NGL 3200 that collects associated petroleum gases from oil and gas fields, will be launched in the near future, the managing director of the National Iranian Oil Company said.
“With the help of various projects underway, 50% of the APG will be collected by the end of the next Iranian year [March 2024],” Mohsen Khojestehmehr was also quoted as saying by the Oil Ministry’s news service Shana.
“By early next year, the equivalent of 8.2 million cubic meters of gas will be collected daily from flares, and by the end of next year, another 18.2 mcm per day will be added to this amount,” he said.
“In 2025 and 2026, 17 mcm and 7 mcm per day of flared gas will be reduced. In other words, we intend to collect 50% of flared gas by the end of next year and the remaining gas will be collected by 2026.”
NGL 3200 is being carried out by NIOC using the capabilities of domestic contractors and an investment of $1.5 billion of the Persian Gulf Petrochemical Industries Company. It is one of the major oil projects that collects and processes APG from West Karoun fields (South and North Azadegan, Yadavaran, North and South Yaran, Sohrab, Sepehr, Jofair and Susangerd) with a total capacity of 14 million cubic meters per day.
NGLs are components of natural gas separated from gas in the form of liquids. Ethane, propane, butane, isobutane and pentane are all NGLs used for a variety of purposes like inputs for petrochemical plants, burned for space heating and cooking, and blended into vehicle fuel.
These plants are designed to process gaseous hydrocarbons and even higher molecular weight hydrocarbons. When processed and purified into finished byproducts, all these are collectively referred to as natural gas liquids.
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 for 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.
Iran has made progress in using flare gas either for power generation or as feed for refineries. Reports say the government has invested $5 billion in related projects.
The Oil Ministry has implemented several measures to reduce gas flaring, such as collecting APG for injection into oil and gas wells, as well as converting it into petroleum products like natural gas liquids and for power production.
Since 2008, Iran has prevented the flaring of 12 billion cubic meters of APG, a source of global warming and waste of valuable fuel.
Despite these measures, 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.
According to official reports, approximately 17 bcm of gas are still flared and wasted annually in Iran.
APG collection projects have been designed for preventing gas flaring, preserving the environment, creating added value from gas collected from the fields, especially those in the east of Karoun River and providing sustainable feed to petrochemical companies.
The ongoing initiatives in different stages of construction are expected to become operational over the next two years.
There are still oilfields where APG is burned off in flares, but negotiations are underway with more local firms to collect it.
