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Time Limit for APG Projects Extended

Time Limit for APG Projects Extended Time Limit for APG Projects Extended

The time limit for implementation of associated petroleum gas (APG) projects has been extended from one year to two years based on applicant companies' demand, Shana news agency reported Saturday.

In November 2014, the oil ministry announced a public tender to put APG to better use by selling it to private firms or individuals.

APG buyers were required by terms of the tender to implement projects within one year, after which point they had to either collect the APG or pay for 80 percent of the amount of gas stipulated in the contract.

Numerous requests were made by applicants demanding the APG tender's supervisory committee to expand the time limit, as full implementation of projects was estimated not to be feasible in less than a year. The committee, therefore, decided to extend the time limit.

Iran, besides Russia and Nigeria, has one the world's highest rates of energy waste in the form of APG, or flare gas, which is released as a byproduct of petroleum extraction.

Burning APG is controversial as it is a pollutant, a source of global warming, and is a waste of a valuable fuel sources.

The gas can be utilized in a number of ways after processing; it can be sold and included in the natural gas distribution networks, used for on-site electricity generation with engines or turbines, reinjected for enhanced oil recovery, or used as feedstock for the petrochemical industry.

 

Financialtribune.com