Deals worth €165m inked for recovering Iranian fields’ flare gas

April 5, 2021 - 15:3

TEHRAN – Iran’s southern Persian Gulf Bid Boland Gas Refining Company has signed three deals worth €165 million with domestic companies for collecting and recovering flare gases of Rag-Sefid offshore oilfield, Shana reported.

The deals were signed in a ceremony attended by Iranian Oil Minister Bijan Namdar Zanganeh and the Managing Director of Persian Gulf Bid Boland Gas Refining Company Mahmoud Amin-Nejad on Monday.

The mentioned deals cover construction of 24 centrifugal compressors as well as Rag-Sefid’s flare gas recovery station.

As reported, the deals for construction, installation, and commissioning of 24 centrifugal compressors worth €75 million were signed with Oil Turbo Compressor Construction Company (OTC) and Mapna Turbine Engineering and Construction Company (TUGA), while the contract for the construction of the Rag-Sefid flare gas recovery station worth €90 million was signed with Energy Industries Engineering and Design (EIED).

Speaking at the signing ceremony, Zanganeh stressed that gas flaring in Iranian fields is going to be minimized by the end of the current Iranian calendar year (March 2022).

“Collecting flare gas has always been my concern, and we have prepared a serious plan in this regard. With the announcement of the Leader, we became more determined to implement this important program,” Zanganeh said.

In order to achieve a desirable level of environmental protection and sustainable development, National Iranian Oil Company (NIOC) and the Oil Ministry have been implementing various programs, one of which is promoting the establishment of flare gas recovery units in the country’s oil-rich regions.

These projects have been defined with the aim of preventing the waste of natural gas, protecting the environment, creating added value, and providing sustainable feed to the country’s petrochemical plants in the mentioned areas.

To this end, back in September 2018, National Iranian South Oil Company (NISOC) had inked two deals worth $1.3 billion with Persian Gulf Bid Boland Gas Refining Company and Maroon Petrochemical Company.

Also, in June 2020, Iranian Central Oil Fields Company (ICOFC) signed a €125-million Engineering Procurement, Construction and Financing (EPCF) deal with an Iranian company for implementing a project that would prevent 82 million square feet of gas flaring every day.

Back in August 2019, Hamid Chitchian, a former minister who currently advises the government on energy issues, said the country had major projects planned to prevent flare gas waste.

According to Chitchian, at the time about 16 billion cubic meters (over 52 billion cubic feet) of flare gas was burning in the country that could be used for various economic purposes, including power generation.


Leave a Comment

5 + 10 =