To help collect associated petroleum gases from western oil and gas fields, Iran’s first natural gas liquid plant, named NGL 3200, has been completed and will be launched soon in Khuzestan Province, the managing director of the National Iranian Oil Company said.
“The major oil projects will collect and process 10 million cubic meters of APG from West Karoun fields [South and North Azadegan, Yadavaran, North and South Yaran] per day,” Mohsen Khojastehmehr was also quoted as saying by IRNA.
The plan was carried out by the National Iranian Oil Company using the capabilities of domestic contractors and an investment of $1.5 billion by the Persian Gulf Petrochemical Industries Company, he added.
According to Khojastehmehr, the long-awaited venture will also underpin the sustainable supply of feedstock to petrochemical plants, most of which cannot raise their output due to feedstock shortage.
“The plant has created direct and indirect jobs for at least 5,000 people in the oil province that has a high rate of unemployment,” he said.
About 60% of the much-needed equipment in the project were produced by domestic manufacturers.
The official noted that the facility is projected to produce 7 mcm of natural gas per day, in addition to 900,000 tons of NGLs per year.
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 heating and cooking, and blended into vehicle fuel.
Various Projects
Several other projects are underway in several provinces, including Ilam, which will help collect 50% of APG from western oil and gas fields by the end of the next Iranian year [March 2024], the NIOC chief said.
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, 18.2 mcm per day will be added to this volume, he added.
Khojastehmehr noted that in 2025 and 2026, flared gas will decline by 17 mcm and 7 mcm per day.
“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,” he added.
NGL 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.
Flare Gas
Iran has made progress in using flare gas 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 projects 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, NIOC 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, protecting 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 local firms to collect it.
