To underpin the sustainable supply of feedstock to petrochemical plants in Ilam Province, the delayed Dehloran natural gas liquid (NGL 3100) project has entered the pilot phase and the facility is expected to become fully operational by March 2023, the Oil Industries, Engineering and Construction Company's (OIEC) managing director said.
“All heavy equipment, including compressors, transformers, demethanizer towers and utility units, are in place and much-needed storage tanks are being installed,” Mohammad Javad Shams was also quoted as saying by the Oil Ministry’s news website.
NGL 3100 will collect and process associated petroleum gas from oilfields in Ilam and Dezful, and is supposed to be fed with as much as 6 million cubic meters of gas per day, he added.
The official noted that the much-needed feedstock for NGL 3100 is supplied with the help of four gas pressure regulating and metering stations in Ilam Province.
Giving a breakdown, Shams said Dehloran, Paydar, West Paydar and Cheshmeh Khosh gas pressure stations will deliver 3 million, 1 million, 500,000 and 1.5 million cubic meters of gas respectively to NGL 3100.
According to the official, the project is being financed by the Oil Industry Pension Fund Investment Company. OIEC has been assigned to develop the project by 2023.
The gas processing unit, the development of which was halted due to financial constraints, is being completed at an estimated cost of $2 billion.
Referring to OIEC's technical capability in undertaking natural gas liquid projects, he said NGL 3100 is the fifth plant undertaken by OIEC.
NGLs are a group of hydrocarbons, including pentane, ethane, propane and butane. These are differentiated from one another by the number of carbon atoms in their molecular chain. They have a wide variety of applications ranging from specialized fuels (e.g., propane, butane) to petrochemical feedstock for making products like plastic and fertilizers.
Commenting on Dehloran gas refinery's advantages, Shams said the initiative will help cut APG in the region — a major source of pollution, as large amounts of harmful emissions are released in the environment through gas flaring.
"As soon as the plant goes on stream, 1,170 barrels of gas condensates, 2 mcm of sweet gas and 3 mcm of sour gas will be produced per day," he added.
New Petrochem Plant
Oil Minister Javad Owji said the Dehloran plant is one of the biggest gas projects in Iran, saying that a new petrochemical plant, whose feedstock will come from NGL 3100, will be established in the region.
OIEC is a leading private engineering, procurement and construction company active in exploration and production, upstream services and energy trade.
Founded in 1987, the company has taken major steps to offer a complete range of EPC services. Today it is considered one of the prominent players in the oil and gas industry. Its activities include operation of oil and gas refineries and pipelines, and petrochemical plants.
The company is also involved in the development of onshore and offshore fields by providing services, including exploration studies and drilling wells.
OIEC was listed among the top 30 contractors in the Middle East in 2020.
Kharg NGL
According to Alireza Mehdizadeh, managing director of the Iranian Offshore Oil Company, Kharg NGL project on Kharg Island in the Persian Gulf awaits funding to help curb gas flaring by nearly 8.5 million cubic meters a day at the Kharg and Bahregan oilfields.
“Most equipment for the NGL project has been supplied and the project has made 60% progress. Work should be over by mid-2024,” he said.
As collection of associated gases is one of the priorities of the government, completion of the project on time is expected from SAFF company, which is the investor of the project.
SAFF operates in oil and gas engineering, management, procurement, construction, transportation, installation, commissioning and startup projects. It owns an offshore yard in Bandar Abbas Special Economic Zone, which is the biggest fabrication yard in Iran.
The NGL venture is among several initiatives to collect and utilize natural gas burnt in the southern oil and gas fields.
Plans to construct the Kharg plant go back nearly a decade ago, but progress has stalled due to managerial issues and funding constraints.
