the Persian Gulf Petrochemical Industry Company, gas will be moved from West Karoun to Bandar Imam Petrochemical Plant,” he said.
Karbasian said the NGL 3100 project had been completed 55% with a daily capacity of 260 mcf/d. He added that this project would gather associated gas in Ilam.
“Another project is being pursued by the BB2 refinery and the Maroun petrochemical plant, which would help gather 870 mcf/d of flare gas,” he said.
Karbasian said improving the environment and generating value-added constituted the main achievements of flare gas gathering projects.
“In addition to this, these projects would guarantee sustainable feedstock supply to petrochemical plants,” he added.
Karbasian said 14 other agreements would be signed for flare gas gathering in the first half of the current calendar year. “By relying on domestic potential, all flares would be turned off,” he said.
Dream Coming True
Mahmoud Aminnejad, CEO of BB2 refinery, said: “The BB2 refinery is currently an energy artery in supplying energy needs and feedstock to petrochemical plants in Mahshahr.”
He said that the BB2 refinery came online last year to gather associated gas in the provinces of Khuzestan, Bushehr and Kohguiluyeh & Boyer Ahmad.
Aminnejad said for the completion of the BB2 refinery feedstock supply chain, the project for building flare gas gathering facilities was assigned to the BB2 company.
“The agreement is valued at €1 billion, signed between National Iranian South Oil Company (NISOC) and PGPIC,” he said.
He said the project included 27 subprojects divided into pre-compression and injection, retrofitting decrepit facilities and flare gas gathering.
Aminnejad said basic studies for this project had been conducted by a domestic contractor.
“Currently, 12 agreements – today’s agreements inclusive – have been signed for €363 million, 11 of which is taking effect,” he said.
He said thanks to NISOC’s good cooperation, agreements valued at about €350 million would become effective over the coming two months.
“Therefore, of a €1 billion project package, €700 million would be agreed upon. That is a big achievement that would make the dream of flare gas gathering come true in a place like the BB2 refinery,” said Aminnejad.
He said the newly signed agreements with OTC, TUGA and EIED would help increase the BB2 output by 120-125 mcf/d.
Aminnejad said 110 compressors were also being manufactured in line with the retrofitting of flare gas gathering facilities.
“Our objective is to make maximum use of domestic potential in supplying these compressors. For the compressors whose technology is not available in the country, there is planning for Iranian companies to partner foreign companies in a bid to transfer in such technologies,” he said.
Aminnejad said about 350km of sour gas pipeline was envisaged for transferring feedstock to the BB2 pipes. “About 170km of power transmission lines and 9 high-voltage stations are among the outstanding features of this project,” he said.
Aminnejad said the BB2 company was earning IRR 400 billion in daily revenue by receiving only 45-48% of feedstock. He said, once NGL 1200 comes online, the percentage would reach 65%.
Greenhouse Gas Emissions
Mohammad Javad Ashrafi, director of Khuzestan Department of the Environment, said gathering flare gas would prevent the release of millions of cubic meters of sulfur dioxide and carbon monoxide into air. “Gathering flare gas would be instrumental in capping greenhouse gases,” he said.
“Oil activities leave quite harmful impacts on ecosystems and humans in oil zones. But undoubtedly gathering flare gas can be effective in environmental protection and reducing greenhouse gas emissions,” he said.
Ashrafi said Minister Zangeneh had taken effective steps in protecting the environment, expressing hope that the new agreements would also serve the environment.
Flare Gas Gathering
In line with the policy of the 11th and 12th administrations to put an end to associated gas flaring, protect the environment and create value-added from flared gas on the eastern bank of Karun River, two projects were signed under the title of “Retrofitting and Building Flare Gas Gathering Installations” between National Iranian South Oil Company (NISOC) and the Persian Gulf Bid Boland Gas Refining Company and the Maroun Petrochemical Company for $1.3 billion. The agreement signed with the Bid Boland company is valued at $1.109 billion for carrying out 27 subprojects – building gas gathering stations, retrofitting existing stations and transferring gathered gas to the Bid Boland refinery – over 42 months. These subprojects are aimed at gathering 590 mcf/d of associated gas to be treated at refinery. That would add about 1.5 million tonnes a year of ethane to the refinery feedstock, which would be a long step in resolving feedstock shortage problem at the refinery and affiliated petrochemical plants. This project would provide NIOC with about 400 mcf/d of light gas that could be fed into oil fields to be used as fuel.
This agreement was signed in 2018 after conceptual studies were conducted to that effect. A year later, it became effective and would be finalized up to March 2023.
So far, 7 subprojects for gathering 130 mcf/d of gas have been awarded to subcontractors under 9 agreements. Before the end of the mandate of the current administration, 11 more subprojects would be awarded under 5 agreements for gathering 400 mcf/d of gas. Totally, 18 subprojects would be finalized under 20 EPC agreements.
In order to make maximum use of domestic potential, transfer in technology and build capacity for rotary machinery manufacturing, empower domestic manufacturers, OTC would manufacture 16 electrocompressors for the Aghajari 5 and Bibi 1 Hakimieh production units and Pazanan recycling’s gas pre-compressor station for €40 million over 24 months. TUGA will handle manufacturing of 8 electrocompressors for gas gathering at Bibi Hakimieh 2 for €21.5 million over 30 months. And finally, EIED has been awarded a €89.785 million agreement for building a flare gas gathering station in Rag Sefid over 28 months.