Hassan Neshanzadeh said Wednesday during a meeting reviewing progress on flare gas recovery projects in the East Karun region that the refinery, which came online after years of planning and large-scale construction, has reached close to 90% of capacity for the first time over the past one to two months.

He said the refinery’s capacity is equivalent to two phases of the South Pars gas field and supplies about 6% to 6.5% of the country’s gas consumption, playing a significant role in maintaining the stability of the national gas network.

Referring to feedstock supply challenges, Neshanzadeh said flare gas recovery projects in East Karun began in 2019 under Oil Ministry policies and in cooperation with the National Iranian Oil Co. He said most infrastructure projects — including gathering lines, product pipelines and power supply — have been completed or are in final stages, while ancillary projects and finishing units are undergoing pre-commissioning. He expressed hope that most of the projects will come online by next year.

Barter, Contract Revisions to Speed Investments

Neshanzadeh praised coordination within the oil industry, saying cooperation among the Oil Ministry, the National Iranian Oil Co. and especially the National Iranian South Oilfields Company is unprecedented and has been crucial to project progress.

He said delays related to import registration and customs clearance of equipment have been resolved with support from the Ministry of Industry, Mine and Trade and the judiciary, adding that most required equipment is now available domestically.

Neshanzadeh described repayment of investments as the main remaining challenge and said initiating barter arrangements and revising certain contract terms would accelerate investment and project completion.

He said flare gas recovery projects at Marun 3 and 5 have been completed, while Aghajari 1 through 5 and other downstream projects are scheduled to be fully implemented by next year.

He also cited measures to secure utilities, saying construction of a 15-megawatt solar power plant and an 80-megawatt power plant is planned to supply electricity to the refinery. In the water sector, he said key programs are underway in cooperation with Khuzestan Water and Wastewater Company to ensure a stable water supply.