Maiden deal to generate cash from associated gases


TEHRAN, March 16 (Shana) — Arvandan Oil and Gas Company has signed a contract with a private customer to sell it gas flare for generation of 100mw/d of power.

The breakthrough deal is regarded as a major step to reduce flaring in the country to save the environment.

“Based on this 5-year deal, a daily amount of 24mcf of gas will be sold to a private customer at $0.0411/mcm in a bid to curb flaring at well heads and preserve the environment,” said Sultan Kamali, managing director of Arvandan Oil and Gas Company, during a ceremony to sign the deal.

He said the gas will be converted into power and other forms of energy instead of being flared.

Accordingly, 100mw/day of power, 1,300 barrels of liquefied petroleum gas (LPG) and gas condensate will be produced by the private customer of the gas, said Kamali.

Using EASD technology and desulfurization of the gas, aluminium nitrate, which is used as a fertilizer, will be used and many jobs will be generated, he further added.

A gas flare, alternatively known as a flare stack, is a gas combustion device used in industrial plants such as petroleum refineries, chemical plants, natural gas processing plants as well as at oil or gas production sites having oil wells, gas wells, offshore oil and gas rigs and landfills.