Projects to collect associated petroleum gases from oilfields have registered a work in progress rate of 44.22%, the production manager at the National Iranian South Oil Company said.
“It is expected that with the completion of the projects in three years, all the flare gases will be collected and sent to the Persian Gulf Bidboland Gas Refinery,” Gholamreza Nourani was also quoted as saying by IRNA.
A total of 27 flare gas collection projects are underway with the investment of Bidboland Gas Refining Company, the completion of which will result in the collection of about 16.8 million cubic meters of flare gas per day,” he added.
Nouran noted that in addition to providing the feed for Bidboland Refinery, they will also help prevent the emission of hazardous gases to preserve the environment.
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.
Its 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 and petrochemical plants. 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.
Valuable Fuel
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 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.
There are still oilfields where APG is burned off in flares, but negotiations are underway with more local firms to collect it. The ongoing initiatives are expected to be completed over the next three years.
As per these programs, by the end of the current Iranian year (March 2024), about 18 mcm per day of APG are expected to be collected from various fields.
In 2025 and 2026, another 17 mcm and 7 mcm per day of flared gas will be reduced. In other words, the country plans to collect all the gas flared in various sites by 2026.
