In a landmark environmental and energy initiative, Iran has signed a series of contracts to collect and utilize flare gas from 12 oil fields in the southwest of the country. The agreements were officially endorsed on Saturday, November 1, via video conference by President Masoud Pezeshkian and Oil Minister Mohsen Paknejad.
According to Shana, the Oil Ministry’s website, the contracts cover flare gas recovery projects at Rag Sefid 1 and 2, Bibi Hakimeh 1, Kupal Bangkestan, Ahvaz 1, 3 and 4 (Asmari), Golkhari 3, Lali, Haft Shahidan, Zeelayi, and Karun fields — all operated by the National Iranian South Oil Company, a subsidiary of the Iranian National oil Company. Once implemented, the projects are expected to capture 295 million cubic feet of gas per day, extinguishing 32 flare stacks across the region within a maximum of 18 months.
A significant feature of these agreements is the participation of five genuine Iranian private investors — Hirbod Niroo, Tamkar Gas, Haftan Gas, Rasam Ara and Nirpars Consortium, and KSC Company — which will cooperate with foreign partners to accelerate technology transfer and project execution.
Beyond their environmental impact, the projects are expected to reduce greenhouse gas emissions by 30,000 tons per day and create long-term employment opportunities in Khuzestan Province. According to estimates, with $800 million in total investment over two years, the flare recovery schemes will not only prevent the daily waste of large gas volumes but also generate substantial economic returns.
The initiative is expected to yield $550 million in annual revenue, produce around 800,000 tons of gas condensate per year to boost petrochemical feedstock, and inject 200 million cubic feet per day of lean gas into the national grid — a critical contribution to meeting domestic energy demand, particularly during winter.
