With the aim of boosting power generation, approximately 2.3 billion cubic meters of APG has been harnessed from Sirri oilfields in the Persian Gulf for power plants in the hot southern regions.
“If power stations did not have access to flare gas, they would use 15 million barrels of diesel in the past decade costing $1 billion,” the Oil Ministry news agency Shana quoted Shahsavar Arghash as saying.
Close to 177 million cubic meters of gas was used (annually) in flares in the Sirri oilfields before IOOC started supplying gas to power plants in the picturesque tourist resort that also is home to a free economic zone.
Flaring is the burning of natural gas that cannot be processed or sold. Flaring is an important safety measure at most oil and gas production sites, as it prevents industrial plant equipment from over-pressuring and exploding.
Sirri Island in the Persian Gulf has several oilfields namely Alvand, Nosrat, Sivand, Dena and Esfand.
The Island is 76 km from Bandar-e-Lengeh and 50 km west of the strategic Abu Musa Island.
Kish is a 91.5 square kilometer holiday resort in Bandar Lengeh County, Hormozgan Province, off the southern coast of Iran. Given its free trade zone status, the island is a consumer's paradise, with numerous malls, shopping centers and tourist attractions.
Gas for Electricity Generation
A project to construct a pipeline to transfer natural gas to Kish is being carried out by the Pars Oil and Gas Company, a subsidiary of the National Iranian Oil Company.
The 120-km pipeline branches off from the IGAT7 and provides gas to the tourist island.
Providing gas for two thermal power plants is a priority and later gas will be sold to industries, commercial centers and households. The project is expected to be completed next year.
The Iran Gas Trunkline (IGAT) is a series of large diameter pipelines transferring gas from refineries from the south to different parts of the country.
IGAT7, 56 inches (1,420 mm) in diameter, interconnects east of Assalouyeh in Bushehr Province to Sarkhoon Refinery in Hormozgan Province and transfers natural gas produced in South Pars Gas Field to Hormozgan, Kerman and Sistan-Baluchestan provinces.
Kish Island's electricity network is yet not connected to the national grid. Two power plants in the island have a total generation capacity of 230 megawatts.
A part of the feedstock for the plants comprises APG from the Sirri field. Diesel is also used.
Gas supply project from IGAT7 should help stable fuel supply to power plants. Providing gas to power stations will also cut consumption of diesel by about 200 million liters annually.