Iran Launches $1.6 Bln Gas Recovery Project to Curb Flaring, Save $700 Mln Annually

Iran Launches $1.6 Bln Gas Recovery Project to Curb Flaring, Save $700 Mln Annually
(Sunday, August 17, 2025) 11:36

TEHRAN (NIPNA) – Iran has inaugurated a $1.6 billion project in Ilam province to capture associated petroleum gas (APG) from oilfields in the southwest, a move President Masoud Pezeshkian said would prevent the waste of about $700 million worth of gas each year.

 

The NGL 3100 project, officially launched on Saturday, is designed to process up to 240 million cubic feet per day of gas, supplying the national grid with more than 4.3 million cubic metres of sweet gas daily while producing ethane, condensates and sulphur for downstream industries, according to state media.

Pezeshkian said the project would not only cut pollution and boost energy efficiency but also stimulate jobs and industry in the region. “The downstream industries of this project have high potential for job creation. We will provide all the support necessary to accelerate its completion,” he said at the inauguration ceremony.

The facility includes a 100-megawatt power plant, two gas compression stations and 350 km of pipelines. Once fully operational, it will generate 132,000 tonnes of sulphur annually, 850 barrels per day of gas condensates, and 1,055 tonnes per year of heavier hydrocarbons, officials said.

The project, which is expected to shut down eight flare stacks in the area, has already begun operations with an initial feed of 80 million cubic feet per day and will gradually ramp up to full capacity. More than 85% of its equipment was manufactured domestically.

Officials said the plant would create 1,500 direct and 3,000 indirect jobs, while also supporting petrochemical complexes in western Iran, including the NGL 3200 plant and the Bandar Imam petrochemical hub.

Iran, the world’s third-largest gas flarer in 2018 after Russia and Iraq, has pledged to eliminate routine flaring by 2029 as part of its energy strategy and international climate commitments.

 


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