Iranian companies will build infrastructure to contain and collect associated petroleum gas from oilfields in its southern Khuzestan province, an official at the National Iranian Oil Company (NIOC) said on Saturday.
The NIOC will sign two contracts, which worth 1.2 billion U.S. dollars, with two domestic companies, namely Persian Gulf Petrochemical Industries Company and Marun Petrochemical Company, to implement the project, said NIOC director of investment and business Mohammad Mostafavi, quoted by EghtesadOnline.
Associated petroleum gas is a form of natural gas found in deposits of petroleum. It is often released as a waste product. When it is burnt off in gas flares, it is referred to as flare gas.
The project is scheduled to be completed in two years, Mostafavi said, adding that it aims to prevent the emission of 22 million cubic meters of flare gas per day in the region.
The collected gas will be supplied to Iran's under-construction Bid Boland-2 Gas Refinery and Marun Petrochemical Company, he added.
Editor:Cherie
