Iran (IMNA) - According to World Bank data, Iran currently burns around 17.3 billion cubic meters of flare gas annually, ranking third globally in gas flaring. For decades, associated gas produced during oil extraction has been wasted through flaring, releasing harmful greenhouse gases into the atmosphere. The new initiative aims to capture this gas and channel it into refineries, petrochemical plants, and the national gas network.
The ambitious program encompasses 70 major and minor projects across Iran’s southern oil-rich provinces, with 40 of them recently awarded to the private sector. The contracts, valued at over $800 million, cover operations in Ahvaz, Aghajari, Masjed Soleyman, and Gachsaran. The project is scheduled for completion within 18 months and involves both domestic and international investors.
Once operational, the initiative will extinguish about 30 flares across 11 production units, recovering over 295 million cubic feet of gas per day. It is projected to generate approximately $550 million in annual revenue, produce 800,000 tons of gas liquids to stabilize petrochemical feedstock, and inject 200 million cubic feet of light gas daily into the national grid, helping to meet peak winter demand.
Experts highlight that the move represents a broader transformation in Iran’s energy strategy, moving from short-term crude exports to long-term industrial growth. Recovered gas will not only feed the national gas grid but also support petrochemical and gas-to-liquids (GTL) industries, advancing domestic refining and production of higher-value products such as fuels, lubricants, and chemicals.
The environmental benefits are significant. Flaring releases large volumes of carbon dioxide, methane, and toxic compounds, contributing to climate change and local air pollution, particularly in southern oil provinces. By capturing flare gas, Iran can cut millions of tons of CO₂ emissions annually.
The initiative also emphasizes private-sector participation, with flexible legal and financial frameworks encouraging domestic investment and technology transfer. This approach is expected to create hundreds of jobs in construction, engineering, and plant operations, particularly in Khuzestan and other oil-producing regions.
By converting waste gas into economic and industrial value, Iran is redefining its energy policy, promoting efficiency, environmental stewardship, and long-term economic growth. Each flare extinguished represents recovered national wealth and a cleaner future for the country’s southern oil fields.
Your Comment