BIPC Launches Flare Reduction Project, Boosts NGL Feedstock by 150%

BIPC Launches Flare Reduction Project, Boosts NGL Feedstock by 150%
(Monday, July 21, 2025) 09:49

MAHSHAR (NIPNA) — Iran’s Bandar Imam Petrochemical Company (BIPC) has officially launched a strategic flare reduction project, marking a major milestone in its sustainability and capacity expansion efforts. The development comes as the company reports a 150% increase in its NGL (natural gas liquids) feedstock intake, now exceeding 100,000 barrels per day, up from 40,000 barrels just three years ago.

 

The surge in feedstock volume has been made possible through major infrastructure upgrades and close collaboration with the National Iranian South Oil Company. These advancements have significantly enhanced operational efficiency and helped preserve national energy resources.

According to a statement released by the company, critical upgrades are underway across several units. A key focus has been the overhaul of Compressor 103 at Gachsaran Pressure Boosting Station No. 1, alongside comprehensive repairs to an Elliott compressor and production of spare parts for two others.

In parallel, the glycol unit (NGL1200) has seen the installation of a new plunger pump with an electric motor, with specialized mechanical seals designed and manufactured locally.

Reconstruction and Modernization Drive

BIPC has also completed extensive restoration work at its downstream units. In the NGL400 unit, the heavily damaged C-401C propane refrigeration cycle compressor has been rebuilt using reverse engineering in collaboration with domestic firms. More than 90% of its components are now sourced locally. For the first time, a protection system is being installed on the unit.

Ten heat exchangers are scheduled for repairs, three of which have already had their tubes supplied, with two units fully restored. Additional upgrades include the refurbishment of two air-cooled heat exchangers at Gachsaran Station No. 4 and the replacement and installation of silencers at Station No. 1 with support from local contractors.

€55M Pipeline Project to Reduce Flaring

In a bid to curb flaring and recover hydrocarbon resources, the company has brought a €55 million, 180-kilometer pipeline online, linking NGL3100 to NGL3200. The pipeline is expected to raise daily feedstock volumes by at least 8,000 barrels and significantly reduce routine gas flaring.

Investment in Long-Term Feedstock Stability

Continuing its expansion agenda, Bandar Imam Petrochemical has launched development projects in the West Karoun and Darkhovin regions and initiated Phase 2 of the NGL3200 unit. These initiatives, backed by more than $200 million in investment, are designed to boost production capacity and reduce dependency on volatile feedstock sources.

Feedstock Contract Reform Proposal

To accelerate equipment modernization, the company has issued a tender for a specialist contractor to manage sensitive and rotating machinery. Furthermore, during a ministerial visit to Mahshahr last year, the company’s CEO proposed a new contractual mechanism allowing petrochemical firms to participate in upstream equipment refurbishment and offset those costs against feedstock payments.

With these strategic efforts, Bandar Imam Petrochemical continues to strengthen Iran’s petrochemical infrastructure, enhance energy efficiency, and safeguard national assets — signaling a more resilient and sustainable future for the country’s downstream sector.

 


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