The Ten Days of Fajr commemorates the dedicated efforts and resolute strides of a nation that has consistently emphasized self-sufficiency and sustainable development over the past 47 years. This year, designated as "Investment for Production," the Ministry of Oil is determinedly advancing national projects at an accelerated pace. Among these, the realization of the long-held aspiration to capture flare gas stands as a brilliant symbol of technological maturity and the conversion of an environmental challenge into an economic opportunity.

This remarkable transformation has occurred ahead of schedule, thanks to a cohesive approach. Evidence of this is found in a report by the Iranian Parliament Research Center, which indicates that in the first year of implementing the 7th National Development Plan (2024), the oil industry achieved a 460% performance rate in flare gas collection. It not only met the annual target of 1.5 billion cubic meters but exceeded the plan by reaching 3.3 billion cubic meters.

This achievement is not merely a quantitative step forward; it establishes a solid foundation for the ambitious goal of "creating an annual capacity to capture 16 billion cubic meters of associated gas by the end of the 7th Development Plan (2028)." This success demonstrates that with national will and determined management, long-standing aspirations can become tangible reality, taking major strides toward increased productivity and safeguarding national wealth. The following report details the actions taken, project progress statistics, and the future outlook of this major initiative.

Based on established plans, the National Iranian Oil Company (NIOC) is pursuing flare gas collection primarily through two methods: "executing long-term projects" (constructing NGL units and associated/flare gas gathering stations in East Karun) and "short-term projects" (auctioning flare gas for sale until long-term projects become operational).

National Projects Realizing a Long-Held Dream

Currently, five major national flare gas collection projects are underway. Their progress is detailed below.

   The "NGL 3200" or Persian Gulf Hoveyzeh Gas Refinery project, with an investment of over $1.3 billion by the Persian Gulf Holding, is set to collect over 14 million cubic meters of flare gas daily in the West Karun region. This project is approximately 84% complete, and its second phase is forecast to be fully operational by the end of this year.

   The "NGL 3100 Dehloran" project, with an investment of over $1.4 billion by the Omid Investment Group, targets the daily collection of nearly 7 million cubic meters of associated gas in Ilam Province. The first phase of this project became operational in early June 2024 and is now nearly 97% complete.

   The third project, in the offshore sector, involves the "construction of the Kharg Gas and LPG Plant." With a $700 million investment by the Offshore Industries Co. (OICO), it aims to collect about 8 million cubic meters of flare gas daily from the Forouzan and other offshore fields. This project, currently 76% complete, is scheduled for completion and operation by 2028, pending financing.

   The major "Flare Gas Collection at the Persian Gulf Bid Boland Gas Refinery" project, with an investment of nearly $1.109 billion, aims to collect close to 17 million cubic meters of gas per day from flares at the Marun, Aghajari, Rag Sefid, Gachsaran, and Bibi Hakimeh fields. Forecasts indicate this project, which began gradual implementation in 2023 and is now about 74% complete, will be finalized by 2028.

   The "Flare Gas Collection by Marun Petrochemical" plan, involving a $167 million investment by Maroun Petrochemical Company, is designed to collect over 5 million cubic meters of flare gas daily from the Ahvaz and Marun fields. It has achieved 76% progress. Operations began gradually in 2024 and are scheduled for gradual completion and commissioning by the first half of 1406.

In addition to these five major projects, several smaller projects have been defined at the Asalouyeh gas refineries (Pars 1 and Pars 2 sites). Their operation will collectively gather about 7 million cubic meters of flare gas per day.

The 14th Government's Initiative: Private Sector Joins the Effort to Extinguish Flares

Concurrently with long-term project execution, the Ministry of Petroleum has established short-term plans for flare gas collection through temporary auction and sale contracts. This leverages private sector capacity to prevent the waste of even a single cubic foot of gas until national projects are fully operational. Accordingly, seven short-term flare gas collection projects—including "Parsi Cluster (Aghajari)," "Marun3," "Mansouri," "Marun5 (Asmari Sweet and Sour)," "Marun6," and "the first phase of Cheshmeh Khosh"—have been launched. They collectively gather the equivalent of 1.7 million cubic meters of associated gas daily.

Furthermore, nine other short-term projects with a daily collection capacity of over 3.3 million cubic meters are underway, and four more projects with a daily capacity of 566,000 cubic meters are in the contract finalization stage. Additionally, auctions and contracts for the allocation of approximately 27 million cubic meters per day at 45 other locations are planned by year-end.

Flare gas collection not only addresses environmental challenges but also helps reduce the gas supply imbalance—though the key to solving the energy imbalance lies not on the supply side but in demand management and optimized consumption. Nevertheless, as Oil Minister Javad Owji has pledged, reducing flaring has been a major concern within the oil industry. Understanding this concern, the 14th government's Ministry of Petroleum is taking serious and determined steps to control flare gases and prevent the waste of national wealth.