Iran Boosts Flare Gas Collection Capacity Amid Long-Term Targets

The Iranian oil industry has made significant strides in reducing flaring by increasing its capacity to collect associated petroleum gases. According to Mehr News Agency, flare gas collection has reached over 16 million cubic meters per day, up from about 7 million cubic meters per day before the start of the fourteenth government.

This increase is attributed to the operation of new processing units and short-term projects, such as the Marun 5 project in the National Iranian South Oil Company. The long-term goal is to reduce flaring to 35 million cubic meters per day by the end of the fourteenth government.

The flare gas collection program involves both short-term and long-term pathways. Short-term projects aim to bring a portion of flare gases into the value chain within 18-30 months, while long-term projects focus on creating sustainable associated gas processing capacity. The implementation of these projects requires significant investment in infrastructure, including pipelines, booster stations, sweetening equipment, and processing units.

A total investment of $6 billion is estimated to be required to collect the bulk of flare gases, with approximately $4.5 billion already provided by the private sector. The main model for project implementation involves selling flare gas to investors who then process it and generate revenue from extracted gas products and liquids.