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EghtesadOnline: The National Iranian Oil Company is expected to sign two contracts, worth $1.2 billion, with domestic companies to collect associated petroleum gases from oilfields in the eastern Karoun region, Khuzestan Province, an official at NIOC said.

“Following deals with Persian Gulf Petrochemical Industries Company and Marun Petrochemical Company, 30 plans devised by NIOC will be given to contractors in the next few days,” Mohammad Mostafavi was quoted as saying by Shana on Tuesday.

APG is a form of natural gas found in deposits of petroleum. It is often released as a waste product. When it is burnt off in gas flares, it is referred to as flare gas.

According to Mostafavi, the initiatives, which are to complete in two years, aim to prevent the emission of 22 million cubic meters of flare gas per day in the region, Financial Tribune reported.

"Based on the prospective deals, the two Iranian firms will renovate the infrastructure for flare gas collection at the National Iranian South Oil Company, a subsidiary of NIOC," he added.

Mostafavi said the collected APG will be supplied to the under-construction Bidboland-2 Gas Refinery (14.4 mcm/d) and Marun Petrochemical Company (7 mcm/d).

In addition, NISOC’s output of natural gas liquids will increase by 38,000 barrels per day, which will be delivered to Bandar Imam Petrochemical Company as feedstock.

Natural gas liquids (NGL) are components of natural gas that are separated from the gas state in the form of liquids. This separation occurs in a field facility or in a gas processing plant through absorption, condensation or other method.

“Thus, petrochemical plants will receive 1.6 million tons of ethane and other heavier gaseous compounds per year, which is a big leap toward alleviating the shortage of feedstock,” Mostafavi said.

He stressed that the feedstock is worth $1.3 billion, resulting in producing materials worth $2.6 billion per annum in the petrochemical complexes.

Mostafavi underlined that about 2.8 mcm/d of flare gas are burning in Masjed Soleiman in Khuzestan Province, which will be collected by a petrochemical complex in the city.

 

APG Iran Oil Company associated petroleum gases Iran Domestic Companies Karoun Oilfields