Tehran, Iran, April 20
By Milad Fashtami - Trend:
National Iranian Oil Company (NIOC), National Petrochemical Company, and planning department of the country's oil ministry formed a special workgroup to decide on the price of by-products of gas and NGL complexes.
Official statistics show that Iran daily burns 40 to 45 million cubic meters of gas per day in the upstream sector, Iran's Mehr News Agency reported.
It's among top priorities of the Oil Ministry to gather the mentioned amount of gas and use it to feed industrial units.
Four gas and natural gas liquids (NGL) refining complexes are under construction in western, central and southern parts of the country, according to the NIOC.
The units will come on stream at the cost of $6 billion.
National Iranian South Oil Company is also constructing five NGL units with the capacity of 300,000 barrels of natural gas condensates feed.
Natural gas liquids (NGLs) are hydrocarbons in the same family of molecules as natural gas and crude oil, composed exclusively of carbon and hydrogen.
Ethane, propane, butane, isobutane, and pentane are all NGLs. NGLs are used as inputs for petrochemical plants, burned for space heat and cooking, and blended into vehicle fuel.
Higher crude oil prices have contributed to increased NGL prices and, in turn, provided incentives to drill in liquids-rich resources with significant NGL content.