The "Optimization and Construction of Flare Gas Gathering Facilities" project in East Karoun aims to improve the environment and generate wealth from associated petroleum gases by supplying feedstock to the Bid Boland Persian Gulf Gas Refinery. The project includes 27 sub-projects and six electrification initiatives across four regions—Maroun, Aghajari, Ragsefid, and Gachsaran—to prevent the daily burning of 670 million cubic feet of gas. 

According to the CEO of Bid Boland Persian Gulf Gas Refining Company, once fully implemented, the project will extinguish 59 flares of varying capacities. So far, 11 flares have been shut down, adding around 120 million cubic feet of gas to the refinery’s feedstock. Sadeqi noted that by the end of the Iranian year 1404 (March 2026), 10 more flares will be extinguished, with the entire East Karun flare gas gathering project set for completion by the end of 1405 (March 2027). 

Read the full interview of SHANA with Javanshir Sadeqi, CEO of Bid Boland Persian Gulf Gas Refining Company, below.

What is the current status of the "Optimization and Construction of Flare Gas Gathering Facilities" project in East Karoun? 

So far, 11 out of 59 flares in the East Karoun project have been extinguished by Bid Boland Persian Gulf Gas Refinery, adding approximately 120 million cubic feet per day (MMCFD) to the refinery’s feedstock. The project aims to improve the environment and monetize associated petroleum gas (APG) by supplying feedstock to the refinery. It includes 27 sub-projects and six electrification projects across Maroun, Aghajari, Rag Sefid, and Gachsaran fields, preventing the daily burning of 670 MMCFD of gas. 

What is the significance of this project for Bid Boland Persian Gulf Gas Refinery? 

Before the refinery’s operation, gathering flare gas was a 110-year-old dream of Iran’s Oil Ministry. Previously, flare gas lacked the quality and operational conditions for collection, but the refinery—Iran’s largest environmental project—made it economically viable. The refinery, with a $3.4 billion investment, initially operated at 25% capacity in 2020 due to feedstock shortages. Now, its nominal capacity exceeds 2 billion cubic feet per day (BCFD), making flare gas recovery critical for stable operations. Downstream petrochemical plants also rely on its products. 

How extensive is the East Karoun flare gas project?

It is a massive and challenging undertaking due to sanctions, financing constraints, and operational complexities across 1.5 million square kilometers in four provinces. Ethnic, tribal, and geographical challenges further complicate execution. The project includes: 

- 27 sub-projects across 10 oil fields 

- 6 electrification projects 

Once completed, it will prevent 670 MMCFD of gas flaring—over 35% of the refinery’s design capacity. 

How many flares will be extinguished upon completion? 

59 flares of varying sizes will be shut down. Currently, 11 flares have been extinguished, adding 120 MMCFD to feedstock. Another 10 flares will be eliminated by March 2026, with full completion expected by March 2027. 

What is the progress in the Rag Sefid region? 

- 80 MMCFD is currently being collected (to rise to 150 MMCFD). 

- 7 out of 12 flares have been extinguished. 

- The remaining projects should conclude by June 2025, adding 240–250 MMCFD to refinery capacity. 

- €140 million has been spent in this region so far. 

What about the Aghajari region? 

- Five gas-receiving projects are underway. 

- Aghajari 2 (prioritized for 2025) will repurpose 80 MMCFD of rich gas, reducing pollution and boosting revenue. 

- Two other projects aim to increase intake to 120 MMCFD. 

- €240 million has been allocated here. 

How much gas is being collected from Gachsaran? 

- Two projects are complete, extinguishing four flares. 

- Gas is sent to NGL 1200 for sweetening before refinery use. 

- A gas injection project (starting 2025) will enhance oil recovery by 15,000 barrels/day and supply heavy components (ethane, propane, butane, pentane-plus) to Bid Boland. 

What is the refinery’s current feedstock intake? 

The refinery receives 1.4 BCFD (70% capacity), with potential to expand to 2.2 BCFD after upgrades. 

How much will feedstock increase in 1404? 

An additional 120 MMCFD is expected next year. 

What is the total investment in the flare gas project? 

Originally budgeted at $1.1 billion, costs are now projected at $1.4 billion due to delays. €870 million has been spent so far, with 1,200 km of pipelines already laid. 

How much domestic capacity was used?

 Over 80% of the project is locally sourced, but rotating equipment (compressors, pumps) had to be imported due to domestic manufacturing limitations. 106 compressors are deployed, with most contracts awarded to local firms. 

Did Bid Boland meet its 1403 production targets? 

Yes: 

- 1402: 107% of target 

- 1403: 101% of target (20% YoY growth) 

- Output included 2.6 million tons of C5+ and 8 million tons of methane injected into the national grid. 

How much feedstock was supplied to petrochemical plants in 1403? 

- 865,000 tons of ethane (to Gachsaran, Amir Kabir, Marun, Fanavaran, and Bandar Imam petrochemical plants) 

- 100,000 tons of pentane-plus (sold domestically/exported) 

- Exports: 440,000 tons of butane, 630,000 tons of propane, 679,000 tons of pentane-plus 

- Total revenue: $800 million ($700 million from exports). 

What are Bid Boland’s expansion plans? 

- PDH/PP Project: A $1.2 billion plan to convert 700,000 tons/year of propane into polypropylene, establishing a petrochemical hub in Behbahan. 

- HDS Unit: A $63 million investment to produce ultra-low-sulfur pentane-plus (below 1 ppm), used in jet fuel, industrial solvents, and Euro-5 diesel. 

 

How is the refinery addressing internal flaring? 

Bid Boland invested $272 million to compress and inject acidic flare gas into Aghajari oil wells via six compressors and a 59-km pipeline, enhancing oil recovery. This prevents 930,000 tons/year of gas flaring. 

Interview by

Samaneh Bidmeshk