Iran Inaugurates $1.6 Bln Gas Recovery Project in Ilam to Curb Flaring

Iran Inaugurates $1.6 Bln Gas Recovery Project in Ilam to Curb Flaring
(Sunday, August 17, 2025) 11:38

TEHRAN (NIPNA) – Iran has inaugurated a $1.6 billion gas recovery project in Ilam province aimed at capturing associated petroleum gas (APG) from nearby oilfields, a step officials say will cut flaring, generate new revenue and boost jobs in the country’s energy heartland.

 

The NGL 3100 complex, formally launched on Saturday via video conference by President Masoud Pezeshkian with Petroleum Minister Mohsen Paknejad in attendance, will process up to 240 million cubic feet of gas per day.

The facility includes two gas compression stations, a 100-megawatt power plant and 350 km of pipelines. Once fully operational, it will produce more than 4.3 million cubic metres of sweet gas daily for the national grid, as well as ethane and heavier hydrocarbons for downstream petrochemical plants, 132,000 tonnes of sulphur per year and 850 barrels per day of condensates, state media reported.

Officials said the project will shut down eight flare stacks in the area, preventing the waste of gas valued at more than $700 million annually. It has already started operations at 80 million cubic feet per day and will gradually ramp up to full capacity.

More than 85% of the equipment used in the project was manufactured domestically. Around 1,500 direct and 3,000 indirect jobs are expected to be created during its operation, alongside environmental benefits such as lower emissions and improved air quality.

The project will also supply feedstock to the NGL 3200 plant in western Karoun and eventually to the planned Dehloran petrochemical complex.

 


Email is required
Characters left: 500
Comment is required