Plans to Utilize Forouzan Flare Gas

Plans to Utilize Forouzan Flare Gas Plans to Utilize Forouzan Flare Gas

Production of liquefied natural gas using flare gas will commence as soon as the sale contract for Forouzan Oilfield's associated petroleum gas is finalized, Iranian Offshore Oil Company's managing director said on Monday.

"A consortium of domestic and foreign companies will sign the contract with the aim of producing floating liquefied natural gas or FLNG from APG," Saeed Hafezi was quoted as saying by Shana.

"The National Iranian Oil Company intends to run another advertisement to tender the flare gas in IOOC oilfields by the yearend. Moreover, it is predicted that due to sanctions removal, more foreign companies will welcome the tender proposal."

According to Ali Kardor, director of investment at NIOC, three contracts are about to be concluded, one of which is pertinent to IOOC, following NIOC's tenders to sell APG last year.

While the discussion focuses on the prospects of Iran starting natural gas exports to Europe via pipeline or liquefied natural gas shipment by 2020, a senior Iranian gas official says the country is in talks for the use of floating LNG vessel serving to liquefy and deliver Iranian gas to Europe sooner.

In its Fourth Five-Year National Development Plan (2005-9), Iran set targets to produce 70 million tons of LNG from the South Pars, North Pars, Ferdowsi and Golshan gas fields by launching six LNG production facilities, but all of them were cancelled due to sanctions against the country.

According to plans, Iran's gas exports, including LNG, should rise to 80 billion cubic meters per year by 2021.

APG, or associated gas, is a form of natural gas  found with deposits of petroleum, either dissolved in the oil or as a free "gas cap" above the oil in the reservoir.

Historically, this type of gas was released as a waste product from the petroleum extraction industry.

It may be a stranded gas reserve due to the remote location of the oilfield, either at sea or on land. This gas is simply burnt off in gas flares. When this occurs, the gas is referred to as flare gas.

Iranian Offshore Oil Company was established early September 1980 to meet the practical and scientific objectives for the development, exploration and exploitation of crude oil and natural gas in the Persian Gulf.

Iran has 26 joint oil and gas fields with its neighboring countries. Iran shares four oilfields with Saudi Arabia, including Esfandiar, Forouzan, Fars 1 and Fars 2.

Forouzan Field has 53 wells and is linked with Marjan Oilfield of Saudi Arabia. The field is located 100 kilometers southeast of Kharg Island.

The oil of this field is transferred to onshore installations via 20-inch offshore pipeline for production and storage at Kharg Island Oil Terminal. It was discovered in 1966 with estimated in-place reserves of 2.309 billion barrels of crude.

With the continuous rise in clean energy demands, worldwide LNG  production capacity is being expanded very fast and LNG is actually becoming the world’s fastest growing energy sector.

United States' Energy Information Administration states that world natural gas trade, both by pipeline and by shipment in the form of LNG, is poised to increase in future.