Gas flaring, the burning of natural gas produced alongside
crude oil, has long plagued Iran’s oilfields, especially in the southwest.
According to World Bank data, around 150 billion cubic metres of gas are flared
globally each year – equivalent to one-third of Europe’s annual gas use. Iran
was the world’s third-largest gas flarer in 2018, behind Russia and Iraq,
though volumes have since declined.
“By the end of the Seventh Development Plan in 1407 (March
2029), all flare gas recovery projects will be finished and flaring across the
country will be eliminated,” Paknejad said.
One of the flagship projects, the $1.6 billion NGL 3100
plant in Ilam province, has already started partial operations. The facility,
which will gradually ramp up to 240 million cubic feet per day, is designed to
capture associated gas from nearby oilfields, supplying the national grid with
more than 150 million cubic feet of lean gas daily while directing heavier
fractions to petrochemical plants in western Iran. Officials said more than 85%
of the equipment for the project was sourced domestically.
The government has launched nine natural gas liquids (NGL)
projects with a combined capacity of 5.1 billion cubic feet per day, including
plants at Bidboland, Yadavaran, Dehloran, Marun and Kharg Island. Under the
Seventh Plan, Iran aims to raise flare gas recovery capacity to 16 billion
cubic metres per year by 2029, equivalent to 44 million cubic metres per day.
In the past year, short-term tenders allowed private
investors to capture around 60 million cubic feet per day of flare gas, with
new auctions covering 270 million cubic feet per day recently awarded. Another
36 flare packages, totalling about 700 million cubic feet per day, will soon be
offered to domestic investors, officials said.
Iran has pledged under international climate agreements to
reduce its greenhouse gas emissions by 4% unconditionally and up to 8%
conditionally by 2030. Oil Ministry officials say eliminating gas flaring will
play a central role in meeting those targets while providing billions of
dollars in additional gas and liquids for the economy.