TEHRAN – An Iranian corporation, Oil Industries Engineering and Construction Company (OIEC), has signed a $1.4 billion contract with the National Iranian Oil Company to build the country’s largest natural gas to liquids (NGL) plant.

The NGL plant will have the capacity to turn 270 million cubic feet of gases associated with oil into liquids per day.

The plant is projected to come on stream within 44 months. It is also planned to produce 46,000 barrels of ethane as well as 79 million cubic feet of methane per day, the Pana news agency reported.

Some 530 billion cubic feet of associated gas is burnt at Iran’s oilfields, bringing the country around $3 billion of loss annually.

Another NGL plant in the Persian Gulf came on stream in December with the daily production capacity of 100 million cubic feet. The NGL plant is located in the Siri Island in the Persian Gulf and its capacity will rise to 140 million cubic feet in the future.

Iran’s Oil Ministry plans to build another NGL plant in the Kharg Island to cut the burning gases to zero by 2015.