Key efforts focus on flare gas recovery, fuel quality improvement, air pollution mitigation, and climate change adaptation.

Talking to Shana, Shahram Ahmadi, director general of HSE at the Ministry of Oil, discussed the ministry’s environmental initiatives. The interview took place late Tuesday afternoon, June 9, in his office where the air conditioning had been turned off due to the country's energy imbalance. Amid constant phone calls, Ahmadi emphasized the nature of his role—always being on alert for potential emergencies such as explosions, gas leaks or environmental hazards in the oil sector.

A new environmental paradigm

Ahmadi began by reviewing the environmental developments within the oil industry under the 14th administration. He said one of the most important shifts has been the enforcement of environmental obligations under Article 22 of the Seventh Development Plan, which imposes stringent rules on all executive bodies, including the petroleum industry. While the Department of Environment leads implementation, the oil sector plays a key role.

He added that this new paradigm has led to a shift in the environmental regulator’s approach to the oil industry. Previously, the Department of Environment maintained strict oversight, but the Seventh Plan has ushered in a new era for high-level environmental policymaking. The collaboration between the Department of Environment and the Ministry of Oil has allowed for faster coordination and project execution.

Confronting climate change

Ahmadi highlighted major climate-related challenges in Iran such as drought, dust storms and extreme heat, particularly in southern regions. He noted that the oil industry, due to its continuous operations, is particularly vulnerable and thus must take the lead in climate adaptation planning and execution.

For instance, during dust storms or extreme heatwaves, oil sector employees continue operations in outdoor facilities while many other public sectors are closed or limited.

Flare gas recovery: A priority

One of the first environmental issues tackled under the 14th administration was flare gas imbalance. Flare gas recovery has become a priority, with the Seventh Plan targeting a reduction of 16 billion cubic meters annually. Projects in Khuzestan’s oil-rich areas are already underway. The Bidboland Gas Refinery of Persian Gulf has deactivated 11 flares in Gachsaran, with a goal of shutting down 59 in total.

Ahmadi said the National Iranian Oil Company (NIOC) and the National Iranian South Oil Company bear primary responsibility for achieving this target. The latter has introduced 82 detailed programs across operational subsidiaries including Marun, Karun, Aghajari, Masjed Soleyman and Gachsaran.

South Pars environmental projects near completion

The director also referenced the Hoveyzeh Refinery project in West Karun, designed to capture associated gas from local oil fields. Additional flare recovery programs are being carried out by Maroon Petrochemical Co. and in Dehloran’s petchem complex. Together, these are expected to help fulfill the Seventh Plan’s flare gas reduction goals.

He cited a 2020 cabinet resolution mandating air, wastewater and waste pollution mitigation in South Pars, requiring cooperation among South Pars Gas Complex, Pars Oil and Gas Company, Pars Special Economic Energy Zone, and petrochemical firms. Despite technical and logistical hurdles, South Pars environmental projects have achieved approximately 60% progress. Accelerated implementation is expected to significantly improve air quality in Asaluyeh.

Environmental task forces, auctions

Ahmadi noted that alongside state-led flare gas recovery projects, the ministry is also employing auction mechanisms to engage the private sector. This approach allows private firms to collect flare gas and turn it into valuable products, reducing the need for public investment.

Auctions have already been held for 10 refineries in South Pars, leading to the annual collection of about 1.3 billion cubic meters of flare gas.

He emphasized the importance of national environmental task forces under the current administration. One such task force—focused on air pollution reduction—is led by the vice president for executive affairs and has issued more than 14 directives to the Ministry of Petroleum, all of which are either in progress or completed.

Combatting air pollution

Among the ministry's major air pollution initiatives is a memorandum of understanding on the electrification of motorcycles in Tehran. This agreement involves multiple stakeholders, including the Ministry of Oil, Department of the Environment, Ministry of Industry, Mine and Trade, and Tehran Municipality, as well as electric motorcycle manufacturers, postal companies, traffic police, and online platforms.

Ahmadi also addressed emissions from power plants, stating that blaming air pollution solely on liquid fuel is misleading. Emission control depends on multiple factors, including fuel quality. According to Article 13 of the Clean Air Act, even in the absence of suitable fuel, operators must control emissions within permissible levels. Installing pollution control equipment at smokestack outlets is one common solution.

A technical committee led by the Department of the Environment and involving active participation from the Ministry of Oil has been established to explore the feasibility of such technologies in thermal power plants. A pilot project has already been proposed for Shazand Power Plant.