The flare-gas recovery initiative is not only an environmental necessity but also a strategic step to improve efficiency in the oil industry and prevent the waste of national resources. For decades, the burning of associated gas at oil fields has resulted in energy loss, economic damage and increased greenhouse-gas emissions. Implementing comprehensive programs to gather, treat and use this gas economically is therefore a key step toward sustainable development, reducing reliance on fossil fuels and achieving national environmental targets. These projects can also add value along the energy-production chain and support energy security and economic growth.

Flare-gas recovery is one of the Iranian oil industry’s strategic priorities and is now considered a national mission under the 14th administration. After the inauguration of the NGL-3100 project in Dehloran, the president stressed the need to accelerate flare-gas recovery. In response, the oil minister established the “Flare Gas Recovery Task Force” as a facilitation unit to remove obstacles to these projects.

Although various efforts have been made in past years, the targets were never fully reached. Under the Seventh Development Plan, the Oil Ministry is now obligated to recover about 16 billion cubic meters of flare gas annually — roughly 43 million cubic meters per day.

Mohsen Mohammadpour, adviser to the oil minister and head of the flare-gas recovery task force, outlined the latest measures, strategic objectives and upcoming plans in an interview with Shana.

How was the task force structured and what is its mission?

The task force was formed directly after President Masoud Pezeshkian’s directive at the inauguration of the Dehloran NGL-3100 flare-gas recovery project. The president emphasized that flare-gas collection must be accelerated. The oil minister then created the task force as a dedicated facilitation unit. Its main mission is to remove barriers, speed up projects and coordinate flare-gas recovery initiatives.

The aim is to create synergy between the National Iranian Oil Company, National Iranian Gas Company, National Petrochemical Company, contractors and private investors. Previously, dispersed decision-making and long processes slowed progress. Now, with centralized management, all activities move through a unified channel.

The task force is charged with collecting 43 million cubic meters per day of flare gas by the end of 1406 — an accelerated achievement of the Seventh Development Plan’s targets. Overall, the focus is on speeding up, clarifying and facilitating the entire flare-gas recovery chain.

 What are the main flare-gas recovery projects?

Five major national projects are under way:

1.NGL-3100 (Dehloran): Collects associated and flare gas from Central Oilfields Company operations in Ilam Province.

2.NGL-3200 / Hoveyzeh Gas Plant (Persian Gulf): Recovers flare gas from the West Karun region under Arvandan Oil & Gas Company.

3. Marun Petrochemical Company project: Collects flare gas from the Ahvaz and Marun fields, and includes improved combustion systems to reduce emissions until full collection is achieved.

4. Bidboland Persian Gulf Gas Plant: A major project collecting nearly 17 million cubic meters per day from the Marun, Aghajari, Rag-e Sefid, Gachsaran and Bibi Hakimeh fields.

5.Offshore project: Collects about 8 million cubic meters per day from the Forouzan field and other offshore fields.

Smaller projects are also under way at the Asalouyeh gas plants (South Pars Phases 1 and 2), which together will collect roughly 7 million cubic meters per day. For the transition period until long-term projects come online, the Oil Ministry has implemented short-term contracts for temporary collection and processing to prevent even a single cubic foot of gas from being wasted.

All projects are funded by private-sector investment, while the Oil Ministry facilitates licensing, basic infrastructure such as water and power, and administrative support to accelerate completion.

 What obstacles existed, and how were they addressed?

At the outset, 10 major obstacles were identified and reported to the presidency. The president ordered that all issues be resolved within one week. Some obstacles involved customs and currency-allocation problems. Imported equipment was sometimes stuck in customs and even auctioned after being declared abandoned. In other cases, the domestic-production registry system (Tavan-Iran) created delays for specialty items such as compressors and instrumentation, which are not sufficiently produced domestically.

Under the president’s order, whenever domestic production is inadequate, the Ministry of Industry is required to allow imports. A key memorandum was also signed with the Department of Environment to ensure environmental permits — which had taken up to five months — would instead be issued within 10 days in Tehran, given the environmentally beneficial nature of these projects.

Local land disputes are also being resolved with the cooperation of the judiciary, provincial governments and county authorities. The Central Bank has been instructed to facilitate project financing. Combined, these measures have significantly eased the legal and operational path of the projects.

 What are the economic and environmental benefits?

The economic value of recovered flare gas is substantial. Using global prices — roughly 30 cents per cubic meter — each day of delay represents millions of dollars in losses. The recovered gas, whether dry gas, condensates or other saleable components, will supply downstream industries, petrochemical plants and the national gas grid, helping ease energy imbalances.

Environmentally, the benefits are profound. The Oil Ministry has begun upgrading flare systems to ensure complete, smokeless combustion by improving air supply and removing heavy components. In one project in Ahvaz, smoke has been eliminated entirely. This reduces air pollution and improves health conditions for residents in oil-producing regions.

Overall, flare-gas recovery provides three major national benefits: strengthening the economy, improving energy balance and protecting the environment. For these reasons, the Supreme Leader, the president and the oil minister all consider this a high-priority mission.

 What is the outlook for the next three years?

With strong support from the oil minister and continuous oversight by the president, the ministry intends to fully achieve the Seventh Development Plan targets within the next two years — recovering 16 billion cubic meters of flare gas annually, equivalent to 43 million cubic meters per day.

Most investments and equipment orders have already been placed. Fewer than $1 billion in additional capital is needed to complete the projects. The main focus is securing key equipment, especially compression systems, to avoid supply-chain disruptions. With private-sector cooperation, officials expect that by the end of 1406, a significant portion of Iran’s oil flares will be extinguished — marking a major milestone in the history of the country’s oil industry.

Interview by

Amir Eftekharipour