According to the Head of NISOC’s HSE Department Mohammadreza Naderi, the mentioned project is aimed at protecting the environment and also to prevent the waste of the mentioned gases, Shana reported.

The implementation of this project will save 12 million cubic feet per day of gas in Marun 3 unit, while collecting 10 million cubic feet per day of gas in Mansouri field, Naderi said.

“After launching Maroon 6 unit in the future, about 14 million cubic feet per day of flare gas will also be collected from this unit,” he added.

The official noted that under the framework of the mentioned project, private sector companies will install the necessary equipment for collecting the mentioned gases and then collect and transfer them to downstream refineries for processing.

This project is going to prevent the burning of 36 million cubic feet of gas per day, which in addition to its significant environmental effects, including reducing emissions of about 22,000 tons per year of sulfur oxides, 1,500 tons per year of nitrogen oxides, and also reducing emission of greenhouse gases by more than 1.5 million tons per year, will bring significant benefits for the companies through the production of gas condensate and other light gases.

According to Naderi, the contracts for the sale of flare gases to the private sector last for five years and can be extended if necessary.

Back in 2019, NISOC Head Ahmad Mohammadi had said that the country’s southern oil fields will stop wasting flare gas, which is burned during drilling operations, within three years.

According to Mohammadi, the controversial practice of burning off gases through stacks at oil fields, will stop by 2022 in at least four locations south of Iran following a new program defined by the company.

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The deals were signed in a ceremony attended by Iranian Oil Minister Bijan Namdar Zanganeh and the Managing Director of Persian Gulf Bid Boland Gas Refining Company Mahmoud Amin-Nejad on Monday.

The mentioned deals cover construction of 24 centrifugal compressors as well as Rag-Sefid’s flare gas recovery station.

As reported, the deals for construction, installation, and commissioning of 24 centrifugal compressors worth €75 million were signed with Oil Turbo Compressor Construction Company (OTC) and Mapna Turbine Engineering and Construction Company (TUGA), while the contract for the construction of the Rag-Sefid flare gas recovery station worth €90 million was signed with Energy Industries Engineering and Design (EIED).

Speaking at the signing ceremony, Zanganeh stressed that gas flaring in Iranian fields is going to be minimized by the end of the current Iranian calendar year (March 2022).

“Collecting flare gas has always been my concern, and we have prepared a serious plan in this regard. With the announcement of the Leader, we became more determined to implement this important program,” Zanganeh said.

In order to achieve a desirable level of environmental protection and sustainable development, National Iranian Oil Company (NIOC) and the Oil Ministry have been implementing various programs, one of which is promoting the establishment of flare gas recovery units in the country’s oil-rich regions.

These projects have been defined with the aim of preventing the waste of natural gas, protecting the environment, creating added value, and providing sustainable feed to the country’s petrochemical plants in the mentioned areas.

To this end, back in September 2018, National Iranian South Oil Company (NISOC) had inked two deals worth $1.3 billion with Persian Gulf Bid Boland Gas Refining Company and Maroon Petrochemical Company.

Also, in June 2020, Iranian Central Oil Fields Company (ICOFC) signed a €125-million Engineering Procurement, Construction and Financing (EPCF) deal with an Iranian company for implementing a project that would prevent 82 million square feet of gas flaring every day.

Back in August 2019, Hamid Chitchian, a former minister who currently advises the government on energy issues, said the country had major projects planned to prevent flare gas waste.

According to Chitchian, at the time about 16 billion cubic meters (over 52 billion cubic feet) of flare gas was burning in the country that could be used for various economic purposes, including power generation.

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According to Chitchian there is about 16 billion cubic meters (over 52 billion cubic feet) of flare gas that could be used for various economic purposes, including power generation.

The official said research centers affiliated with the oil and energy ministries had reached “valuable achievements” in their joint efforts to optimize the use of flare gas in Iran, according to remarks covered by Iran’s Oil Ministry news service Shana.

“The use of flare gas is one of the challenges of the oil sector,” said Chitchian, adding, “Thus we are planning to attract investment from the private sector and offer loans in the two ministries for this purpose.”

He would not elaborate whether foreign companies with experience in the field would be involved in flaring projects in Iran.

However, the announcement comes as Iran is seeking to offset the impacts of U.S. sanctions on its oil industry.

Once a pure crude exporter, Iran has managed to expand downstream operations in the oil and gas sector both to meet a growing domestic demand for energy and to open up new markets for its refined products.

Commercializing flare gas would enable Iran to diversify energy resources for power plants and industrial units while it can also be exported to other countries.

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