Responding to President Masoud Pezeshkian’s call to speed up flaring gas recovery projects, Paknejad said efforts will be intensified, IRNA reported.

He noted that the ministry’s approach follows two tracks: short-term projects handled by private investors who use associated gas for power generation — with auctions held at a base price of zero to attract more participation — and long-term projects, including the NGL 3100 and Kharg NGL plants, which have seen little progress in recent years but are now back on the ministry’s agenda.

Reviewing achievements from the past year, Paknejad said crude oil output rose by more than 100,000 barrels per day on average, while raw gas production in the upstream sector increased by more than 30 million cubic meters per day.

Oil exports, refining output grow

Paknejad reported that crude oil exports in the first four months of this year were up by about 21,000 barrels per day compared with the same period last year.

He added that production of oil products has also increased. Despite extensive refinery overhauls in the first half of the year, diesel output rose by more than 3 million liters per day, alongside higher gasoline production.

The ministry has also advanced major projects, including an emergency plan to boost crude output capacity by 250,000 barrels per day. A financing agreement for the project was recently signed with the National Development Fund, with final steps now underway.

South Pars gas compression project prioritized

Paknejad highlighted the importance of the South Pars gas field pressure-boosting project, warning that without it, production could fall by 20 to 25 million cubic meters per day within the next two to three years. He said execution of the project will begin as soon as possible.

He also underscored the priority given to gas flaring recovery. The NGL 3100 project, with a capacity of 240 million cubic feet per day, has begun operations with 80 million cubic feet and will gradually expand. Built with $1.6 billion in investment, the plant is expected to generate $700 million in annual revenue once fully operational.