Iran Advances Associated Gas Recovery, Petchem Repairs

Iran Advances Associated Gas Recovery, Petchem Repairs
(Wednesday, November 4, 2026) 00:07

TEHRAN, November 3 (NIPNA) – Iran has assigned a clear implementation path to all associated petroleum gas and flare-gas recovery projects, with their execution accelerating under the current administration, Acting Oil Minister Hamid Bovard said, adding that President Masoud Pezeshkian regularly monitors progress.

Speaking at the 84th meeting of the Government’s Communications Coordination Council, hosted by the Oil Ministry on Saturday, November 1, Bovard said the oil industry had performed positively despite existing challenges and constraints, citing his more than 35 years of experience across different sectors of the industry.

He said the ministry had recorded significant progress in production, development and sales. Oil and petroleum product output, including gasoline and diesel, had increased, while the country had also set a new gas production record.

Associated Gas Recovery Gains Momentum

Bovard said the government had made considerable progress in resolving the status of associated gas and flare-gas recovery projects. The president personally reviews their progress almost every week, he added.

All associated gas and flare-gas projects have now been assigned an implementation framework, Bovard said, noting that the volume of recovered associated gas has increased significantly during the current administration and that the gas has been returned to the production cycle.

Petrochemical Reconstruction Accelerated

Although most petrochemical complexes are privately owned and do not fall under the Oil Ministry, the ministry is following up on efforts to accelerate the reconstruction of facilities damaged during the war, Bovard said.

He added that repair work was under way in the country's two main petrochemical hubs, Asaluyeh and Mahshahr, alongside efforts to expand production capacity.

$30 Billion in Oil Industry Contracts Signed

Bovard said development activities in the oil industry had continued despite existing restrictions, with contracts worth approximately $30 billion signed across various sectors during the current administration. Implementation of the related projects has already begun, he added.

The time required to finalize upstream oil contracts has also been reduced significantly. While some contracts previously took three to four years to sign, coordination with the Plan and Budget Organization has brought the process down to around six months, he said.

The ministry is also continuing a programme aimed at increasing crude oil production by 250,000 barrels per day, Bovard said.

Oil Export Revenue Exceeds Estimates

Despite external pressure and operational constraints, the ministry's overall oil sales performance has been satisfactory, he said. Foreign-currency revenue from oil sales since the beginning of the current Iranian year has been approximately 8% to 10% above initial estimates.

Bovard said the ministry was using all available capacities and export routes to maintain shipments and secure the revenue required for the national budget.

He also noted that Iran had shifted from being a diesel importer to a net exporter during the current administration, expressing hope that exports of diesel and other petroleum products could be further increased.

40% of Lost Gas Capacity Restored

Bovard said reconstruction of oil industry facilities damaged during the war had begun in the early days of the conflict, with funding secured through banking resources and private-sector capacity.

The country lost approximately 230 million cubic metres per day of gas production capacity during the war, he said. So far, 40% of that capacity has been restored through the efforts of industry personnel and in line with the reconstruction programme.

However, Iran's pre-existing gas imbalance remains unresolved, he said, adding that a reduction of around 10% in energy consumption could help the country manage supply conditions during the winter.

Bovard said savings of approximately 10% in gasoline, diesel and natural gas consumption would help address upcoming challenges, stressing the importance of public participation in energy management.

Fuel Supply Maintained During Wartime

Despite attacks on the fuel supply chain and damage to refining facilities, gasoline supplies across the country were not interrupted, Bovard said. The efforts of oil industry employees and cooperation among relevant organizations ensured that fuel distribution was managed and petroleum products remained available in all regions.

He emphasized that continued public cooperation, particularly in reducing natural gas consumption, would be essential to achieving the country's energy-management targets.

 

Email is required
Characters left: 500
Comment is required