Hamid Bovard, NIOC CEO, said the contracts form part of broader
initiatives under Iran’s Seventh Development Plan, which aims to raise crude
oil production to 4.5 million barrels per day, increase gas output to about 1.3
billion cubic meters per day, and collect flared gas across the country’s oil
and gas fields.
“These projects not only contribute to daily injection of over 200
million cubic feet of light gas into the national network but also produce more
than 800,000 tons of gas liquids annually, providing feedstock for
petrochemical plants and adding high value to the country,” Bovard said.
The NIOC CEO highlighted that five flared gas collection projects are
already operational, six are under construction, and the 12 new contracts will
further reduce flaring, including shutting down 32 flare stacks in 12 southern
oil units, notably near Ahvaz. By the end of 2027, about 90% of flared gas is
expected to be captured.
The projects are also expected to prevent daily emissions of
approximately 30,000 tons of greenhouse gases, equivalent to 5,700 tons of
carbon per day, helping reduce environmental pollution in Khuzestan province.
Bovard also announced the construction of Iran’s first mini-NGL plant
in Ahvaz in collaboration with foreign partners and a new gas collection
facility in Masjed Soleyman, set to capture 45 million cubic feet of gas per
day within 18 months.
He emphasized continued private sector engagement, noting that 18
additional investment packages will be finalized by mid-December, inviting
investors to participate in flare gas capture auctions at zero base gas liquid
pricing. Contracts are expected to be implemented within six to 18 months.
Bovard thanked government officials, regional managers, and colleagues
across the oil sector for their support and said the program would help turn
Iran into a major energy production hub while promoting environmental
sustainability.