Tehran, Iran, March 17
By Mehdi Sepahvand -- Trend:
Iran has started selling flare gas to the private sector for the production of electricity.
The first of its kind in Iran, a contract was signed between Arvandan Oil and Gas Company (AOGC) and privately-held HirbodNiroo Group
for the sale of flare gas to be sued for power production, AOGC's official website reported March 16.
According to the five-year contract, Arvandan will sell 680,000 cubic meters per day of gas at the prices of $41.1 per 1000 cubic meters to the private company, Arvandan CEO Soltan Kamali said.
He added the contract specifies that each day about 100 megawatts of electricity, as well as 1,300 barrels of LPG and gas condensates will be produced according to the contract.
According to Iran Oil Ministry's documents, it is planned to gather flared associated gas of 39 oil fields (50 phases) as well as 10 phases of South Pars gas field to prevent burning of 19.78 mcm/d gas in torches.