SHANA -- The National Iranian South Oil Company (NISOC) is to sign two contracts, totally valued at $1.2 billion, with the Persian Gulf Petrochemical Industries Company (PGPIC) and Maroon Petrochemical Company for gathering associated gases in East Karoon area.

The deals will be signed on the sidelines of inauguration of some petrochemical projects in Asaluyeh, southern Iran, on Monday.

The contracts concern 32 projects for renovation and improvement of facilities to gather associated gases in the areas operated by NISOC and are aimed at preventing the burning of 22 million cubic meters of gas per day in East Karoon area.

The deals are scheduled to be signed in a ceremony attended by the Iranian President Hassan Rouhani and Minister of Petroleum Bijan Zanganeh.

Once the projects become operational, 510 mcf/d of gas will be fed to Bidboland II Petrochemical Plant and 250 mcf/d to Maroon Petrochemical Plant. Furthermore, NISOC's gas liquids production will increase by 38,000 barrels per day which will be consumed by Bandar Emam Petrochemical Plant as feedstock.

Thanks to the projects, a total of 1.6 million tons of ethane and heavier gas compounds and 14 million barrels of gas condensates, valued at $1,300 million/year, will be made available to petrochemical plants to consume as feedstock. Items worth over 2,600 million dollars per year are expected to be produced by the feedstock. Moreover, a total of 16 mcm/d of natural gas will be supplied to the National Iranian Oil Company (NIOC).