Collecting APG Will Help Secure Petrochemical Feedstock Supply

EghtesadOnline: Collecting all the flare gas in Khuzestan Province requires $3.5 billion of investment, the province’s governor said.

News ID: ۷۴۸۵۵۳

28 September 2019

Visiting Amir Kabir Petrochemical Company in the Petrochemical Economic Special Zone, Mahshahr County, Gholamreza Shariati said the collected associated petroleum gas can be used as feedstock for petrochemical plants and help ensure stable feedstock supply to the expanding industry, IRNA reported.

APG is natural gas found with deposits of petroleum. It is often released as a waste product and burnt off as flare gas.

Flaring is an important safety measure at many oil and gas production sites, as it prevents industrial plant equipment from over-pressuring and exploding. However, burning high levels of APG is a major source of pollution, Financial Tribune reported.

Flaring pours methane, ethane and propane into the atmosphere contributing to air pollution.

“So far the Persian Gulf Petrochemical Industries Company (Iran’s largest petrochemical company with 60 plus subsidiaries) and Marun Petrochemical Complex have joined the initiative,” Shariati said.

The Oil Ministry has adopted several measures to reduce gas flaring in southwestern Khuzestan, namely collecting APG for injection into oil and gas wells, converting it into petroleum products like natural gas liquids, and using the flare gas for generating electricity.

However, Amir Kabir Company has not yet joined any of the initiatives and its excess gas is still wasted in the form of flare.

Addressing company officials, Shariati said: “Try and participate in the province's APG collection projects and help in improving the province's environmental conditions and in providing feedstock you need”.

Amir Kabir is Iran's largest manufacturer of petrochemical and polymer products, with an annual production capacity of 750,000 tons of heavy polyethylene and linear and light polyethylene.

Its products are used in making pipes, cables, plastic bags, barrels for chemicals and food, synthetic rubber and other resistant polymers.

Iran has prevented the flaring of 12 billion cubic meters of APG, a source of global warming and a waste of valuable fuel, since 2008.

Gas Flaring

Iran has the highest rate of energy waste in the form of APG in the Middle East and ranks third in the world in terms of gas flaring after Russia and Iraq.

According to a report by the Majlis Research Center, approximately 17 bcm of gas is flared and wasted in Iran annually -- $6 billion net loss for the treasury!

A report by the World Bank indicates that for the first time in five years, global gas flaring has increased. Estimates from satellite data in June show a 3% increase in 2018 to 145 billion cubic meters, which is equivalent to the total annual gas consumption of Central and South America.

This means gas flares at oil production sites around the world released more than 300 million tons of carbon dioxide into the atmosphere.

In 2017 the Majlis signed into law a bill to curb flaring of natural gas to 10% or lower by 2022. Rich in oil and gas,  Iran is committed to a global pact to move away from fossil fuels with the goal of limiting the rise in average global temperatures to below 2 degrees Celsius.