Over the past century, associated petroleum gas flaring has produced harmful environmental impacts while threatening the health of local communities in oil and gas areas. No-flaring is significant for the Ministry of Petroleum both from an economic standpoint and from the viewpoint of the fulfillment of international obligations.

However, implementing flare gas capture projects always faces many problems due to the lack of financial resources. Therefore, the Ministry of Petroleum encouraged petrochemical holdings to invest in this sector to provide stable feedstock for downstream plants. This is a win-win game. On the one hand, reliable investment is made in these projects, and on the other hand, petrochemical holdings receive feedstock.

Mazaher Ansari, “HSE and civil defense” director at the Ministry of Petroleum has said that $5 billion have been invested in this sector, adding that all flare gas gathering projects are operated by the private sector. All costs would be recouped by feedstock supply.

Greenhouse gas obligations

Iran’s petroleum industry is committed to reducing its greenhouse gas emissions by 4% unconditionally and 8% conditionally by 2030. To prevent more environmental pollution, Iran’s Ministry of Petroleum considered gathering APG. One of the main priorities of the Ministry of Petroleum in the field of the environment is the management of associated and flare gases, as well as the reduction of atmospheric pollutants, which would save costs and improve the environment.

Management of associated gas with a view to zero flaring is a key plan pursued by the Ministry of Petroleum. The bulk of efforts is focused upon zero flaring, backed by the minister of petroleum in person. Thanks to precise planning, all flare gas capture projects are hoped to become operational by the end of the term in office of the 13th administration.

In the current calendar year (ends on 19 March 2024), the National Iranian Oil Company (NIOC) produced on average 113.6 mcm/d of associated gas, 65% of which (74.6 mcm/d) were gathered by gas compressor stations. Thanks to short-term and long-term projects, 5 mcm/d of gas were being gathered. Gas flaring accounted for 30% of gas output, i.e. 34 mcm/d, which would have been captured by March 2026. It is worth mentioning that 37.4 mcm/d of flare gas are being fed into the Iran Gas Trunkline (IGAT).

Minister Owji has touched on the switching off of 43 gas flares, adding that flare gas capture would reach 32 mcm/d next calendar year (starting on 20 March 2024) and 62 mcm/d the year after.

Long-term projects for flare gas capture include building LPG plants and flare gas capture stations. These projects are expected to come on stream by March 2026.

The first phase of the NGL 3200 plant has become operational in West Karoun. To supply feedstock to this plant, Persian Gulf Petrochemical Industries Company (PGPIC) has been awarded the Darquain surplus gas transmission pipeline project and the West Karoun flare gas gathering station with a capacity of 100 mcf/d under a 72-million-euro deal.

Furthermore, NGL 3100 with a capacity of 240 mcf/d in Dehloran has had 85.38% progress and will come online by March 2024. To guarantee feedstock supply to NGL 3100, the Dehloran gas compressor station with a capacity of 85 mcf/d, worth 128 million euros, and the Dehloran pipeline, worth €85 million, have been awarded for operation, which would become operational by March. Meantime, the Cheshmeh Khosh and West Paydar gas compressor stations have been awarded under a 53-million-euro EPCF deal.

Kharg Iran gas and LPG plant with a capacity of 300 mcf/d on Kharg Island is now 67.1% complete and will become operational by March 2026. Flare gas gathering in East Karoun with a capacity of 593 mcf/d and in Maroun with a capacity of 249 mcf/d is underway under two deals with PGPIC. They are expected to come online by March 2026.

Shot-term projects

Short-term gas gathering projects include Parsi Cluster Maroun 3, Mansouri, Maroun 6, Cheshmeh Khosh, Sarvestan and Saadatabad, Masjed Soleiman, Naft Sefid, Tombi, Par Siah, Zilaei, Haft Shahidan and Nargesi, Anbar and Lali, Qale Nar, Khesht, Sakuy-e Salmak, Sarkan and Maleh Kuh. Parsi Cluster with 3.5 mcf/d capacity, Maroun 3 with 15 mcf/d capacity, Mansouri with 10 mcf/d, Maroun 6 with 22 mcf/d, and Cheshmeh Khosh with 60 mcf/d capacity came online last March. The rest with a capacity of 101 mcf/d is underway.

The Salman and Sarkan/Maleh Kuh platform projects with a capacity of 104 mcf/d are being auctioned off, while permission is sought for the gathering of 60-64 mcf/d of gas.

Flare gas gathering from facilities in the three provinces of Khuzestan, Bushehr Kohguiluyeh and Boyer Ahmad is planned under a $1.1 billion contract with Persian Gulf Bidboland Gas Refining Company. That would help capture 593 mcf/d of gas, thereby supplying 1.5 tonnes of feedstock to refineries per annum.

Cutting air pollution

Protecting the environment and reducing the emission of pollutants have always been one of the main demands of the government and, of course, one of the most important goals of the Ministry of Petroleum, given the concentrated areas of the petroleum industry. Therefore, the establishment and development of upstream, midstream, and downstream industries of the oil industry in the Pars Special Economic Energy Zone (PSEEZ) and the concentration of activities of gas refineries and petrochemical units in that region, have caused an increase in environmental pollution in this region.

In this regard, a local air quality improvement working group was formed and various meetings were held with experts and managers of companies based in Assaluyeh, and various steps were taken according to the aforementioned working group’s strategy (including analyzing the results of air pollution monitoring in the region, determining emission values and determining emission reduction priorities to achieve (to the optimal air quality in the region), which finally led to the formulation of a strategic document for improving the air quality of the region.

Documentation of ambient air quality, reduction of 501,500 tons from sulfur dioxide emission and cutting 2,344 mcm of flare gas, reduction of BTEX compounds emission by 9 micrograms per cubic meter, construction of production wastewater treatment plants (with a total capacity of 1,810 cubic meters per hour) and special and industrial waste management (with a capacity of 100,000 tonnes per year), construction of Phase 2 gas refineries and petrochemical complexes are among the important tasks of the Ministry of Petroleum in flare gas gathering.

Iran Petroleum