Implementing the processing facilities of Hengam oil and gas field on Qeshm Island in the Persian Gulf will help earn $300 million annually, the managing director of Iranian Offshore Oil Company said.
"The project is set to prevent the flaring of some 80 million cubic feet [2.27 million cubic meters] of associated petroleum gas, which would generate $700,000 per day in revenue," Hamid Bovard was also quoted as saying by Shana on Thursday.
The plant was officially inaugurated by President Hassan Rouhani via a video conference on Wednesday. It is equipped with gas sweetening and dehydration facilities that process the sour gas produced at Hengam Oilfield.
Straddling the Iran-Oman border, Hengam Oilfield is located 70 km off Iran’s shore in the Persian Gulf waters in Hormuz Strait. In-place oil and gas reserves of the field are estimated at 700 million barrels and 57 billion cubic meters respectively.
The IOOC chief noted that some €70 million [$87 million] have been spent to launch the gas processing facilities in the field, which investment will return in less than a year.
According to Bovard, the project will help inject a considerable amount of gas into the country's distribution network.
The volume of flared gas equals the output of Gavarzin Gas Field on the island, which implies that gas processing facilities can double Qeshm’s total gas production.
As the official put it, processing the APG instead of burning it into the atmosphere will also help preserve the island's environment.
Gas flaring is a major source of air pollution, as it releases large amounts of harmful emissions.
The government has been obliged to curb the flaring of natural gas to 10% or lower by 2021. The plan stipulates that the government should prepare the ground for private investors to launch gas-flaring reduction projects in all oil and gas fields by easing the terms and conditions of investment to collect and reduce the APGs.
--- Exploiting Domestic Capacities
Bovard said the project's design, construction and installation come along with the maximum exploitation of domestic potentialities.
He added that "the processing facility has been built jointly by IOOC and Jondishapour Company [a domestic engineering, procurement and construction company]" with the aim of following the government's push for maximum utilization of domestic potentials.
Ali Hassani, the development manager of Hengam Oilfield, who was also present at the inauguration ceremony, said the Iranian firms have had a 70% share in the project. He did not provide further details about the names and roles of the companies.
According to Hassani, operations are being conducted to add three wellhead platforms to the treatment facilities.
"The new platforms will be launched next year [starting March]," he said.
--- Electricity Generation
Shahsavar Arghash, director of Qeshm Island Operations at IOOC, said on Wendsday that the processed gas will be used as feedstock for the island's power plant and other plants, including Qeshm Combined Cycle Power Plant.
Qeshm's power plant is set to go on stream by June.
"The excess will be transferred to the port city of Bandar Abbas, capital of Hormozgan Province, for consumption," he concluded.
