Franco-Iranian Consortium to Recover SP Flare Gas
A Franco-Iranian consortium has agreed in a €42 million deal to recover flare gas at phases 2&3 of South Pars gas field. The agreement was signed between National Iranian Oil Company (NIOC) and the consortium of France's Sofregaz and Iran's Sanat Sazeh Samin.
The prospective project will save half a million cubic meters per day of gas. At the signing ceremony, NIOC was represented by Ali-Mohammad Ahmadi, manager of South Pars sustainable development project, CEO of Sofregaz Yann Aubry Lecomte, and CEO of Sanat Sazeh Samin Kourosh Ahanj.
Besides saving flare gas, the project would prevent the emission of a large quantity of carbon monoxide, and would facilitate sharing technology with other phases of South Pars, facilitate flare gas gathering and injection into oil and gas fields for enhanced recovery, protect the environment and help improve air quality in favor of local staff and people's health.
Flare gas recovery is the most effective technology and the most advanced method in the world to gather flare gas at refineries and similar industrial plants.
After assessing the status quo and defining objectives for the removal of pollution and recovery of flare gas, the NIOC proceeded with holding a tender bid on the project. The Sofregaz-Sanat Sazeh Samin consortium was among an array of Iranian and foreign bidders for the project.
€500mn Investment
Mohammad Meshkinfam, CEO of Pars Oil and Gas Company (POGC), told the ceremony that $90 billion had been envisaged for the development of South Pars field. "So far, $70 billion has been invested and $20 billion remains to be spent."
"Of remaining $20 billion, €500 million will be earmarked for preventing flare gas to be burnt off at South Pars," said Meshkinfam.
He said that South Pars accounts for some 70% of Iran's gas, expressing hope that the flare gas recovery project at South Pars would become operational soon.
Meshkinfam expressed hope that the contract would be a starting point for more flare gas recovery projects in the other refineries of South Pars.
The refineries of South Pars were designed to prevent gas flaring, he said, adding: "Unfortunately, we hit snags in this sector due to sanctions and the refusal of global manufacturers to cooperate with us."
He, however, said that after Iran's signature of a nuclear deal with world powers in 2015 "good cooperation" had taken shape between manufacturers and South Pars Gas Complex (SPGC). The landmark nuclear deal, dubbed the Joint Comprehensive Plan of Action (JCPOA), took effect in January 2016.
"In the recent two years, given the start of cooperation between Iran and foreign companies post-JCPOA, we have been using new technologies," he said.
Meshkinfam said projects had been also devised for the disposal of oil pollutants in order to safeguard the environment.
He said that "no flaring" would be important in terms of protecting local environment and helping Iran fulfill its international commitments with regard to GHG emissions.
Noting that signature of this agreement would set precedent for Iran to be engaged in reducing polluting gas, Meshkinfam said that 75% of total polluting gas produced in the world belongs to ten countries, including Iran.
Sofregaz Boss Happy With Project
Addressing reporters, Lecomte expressed happiness with the conclusion of the agreement for flare gas recovery at South Pars.
"We are very proud to be here…We are very happy [with this project]," he said, describing the project of great "importance".
He said that Sofregaz started talks with Iran three years ago and finally it came to conclusion to cooperate with NIOC in this project which he said had "economic" advantages.
Lecomte noted that the flare gas recovery project would help Iran fulfill its commitments under the Kyoto Protocol which calls for capping greenhouse gas emissions.
"As a gas engineering company, we have the best and latest technology to recover flare gas," said the Sofregaz chief.
He said Sofregaz would begin by recovering 25% of flare gas produced at the South Pars refinery.
Alongside Sazeh Samin, "we also enjoy the cooperation of French engineering company Technip", which specializes in designing, said Lecomte.
"We are happy that this project would meet all expectations," he added.
He also referred to the history of Sofregaz's presence in Iran, saying it "participated in Iran's gas projects since 1960"
"Now we are very happy to be able to come back and we are happy especially with this project," he said, noting that the gas flare recovery project would not be limited to the present generation, but it would belong to future generations.
He termed as "great" the environmental advantages of the project, saying: "We are happy to cooperate in the project. 95% of gas will be reinjected into installations. So you see it is very efficient."
Lecomte said the gas recovery project would have great economic and environmental advantages.
Sharp Reduction in Gas Flaring
Gholam-Reza Manouchehri, deputy managing director of NIOC for engineering and development, said the level of gas flaring at South Pars had dropped from 15 mcm per week to 3 mcm per week.
He said that normally there must be "no flaring" at South Pars, adding that "since the gas flaring had been an issue we tried to reduce its level" by upgrading installations.
Flare Gas Recovery
Ahanj said implementation of the project in partnership with Sofregaz would help transfer of technology for flare gas recovery into Iran.
"In implementing this contract, Sanat Sazeh Samin would have close cooperation with France's Sofregaz and France's Technip would help this consortium in this domain," he added.
He said that Sofregaz first started cooperating with Iran in the midst of international sanctions, adding that it had never halted its cooperation.
Noting that flare gas recovery would cause no trouble in the operation of the refinery of South pars, Ahanj said the return of investment would be in 18 months.
"We are in talks with the National Iranian South Oil Company for a similar project. In case talks reach conclusion and cooperation starts we hope to be able to gather and recover at least 1 mcm/d of flare gas of this company," he said.
South Pars Sustainable Development
Ali-Mohammad Ahmadi, director of South Pars sustainable development project, said: "The project for the recovery and consumption of gas flare at the 2nd refinery, which is the first contract for the sustainable development of South Pars, will become operational in less than two years."
"This plan (sustainable development) was approved along with 50 subprojects by the Board of Directors of NIOC," he said.
Ahmadi said that Iran's Minister of Petroleum Bijan Zangeneh had insisted on concentration on environmental projects.