Utilizing of APG to Expand in Iran

EghtesadOnline: In the framework of commitments to help protect the environment, an estimated 400,000 cubic meters of associated petroleum gas will be collected from Sa’adatabad Oil Field in Fars Province on a daily basis, said the managing director of Iranian Central Oil Fields Company.

News ID: ۷۴۹۳۰۰

28 December 2019

“The project to collect APG from the field will take two years to complete,” the Oil Ministry news agency Shana quoted Ramin Hatami as saying.

Collecting APG from oil and gas fields is a priority of the Oil Ministry to help safeguard the environment, prevent loss of national wealth and create jobs.

Commenting on the collection of flare gases from Sumar and Naftshahr fields in Kermanshah Province, Hatami said that implementation of the projects will prevent flaring of 340,000 cubic meters of gas every day, Financial Tribune reported.

Flaring is the burning of natural gas that cannot be processed or sold. Collection of APG is an important safety measure at many oil and gas production sites, as it prevents industrial plant equipment from over-pressuring and exploding.

Iran has made progress in using flare gas either for power generation or as a feed to refineries. Reports say the government has invested $5 billion in related projects.

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

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

Despite the measures, 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 the Majlis Research Center, approximately 17 bcm of gas is flared and wasted annually -- $6 billion net loss for the treasury.

Gas flaring is a global problem that is getting worse. The World Bank reported a 3% increase in gas flaring on a global scale last year.

The report said oil production sites around the world were burning approximately 140 bcm of natural gas annually.