NIOC has defined 30 projects to gather associated gases in the East Karoon region.
Speaking to Shana, Mohammad Mostafavi, director of investment and businesses at NIOC, said the company was about the finalize two contracts valued at $1.2 billion within the next few days with the aim of preventing the burning of 760 million cubic feet (22 mcm) of associated gases in Khuzestan.
PGPIC and Maroon Petrochemical Company would sign the deals separately with NIOC, he said.
Flare stacks are responsible for the lion's share of air pollution in the southwestern, oil-rich province of Khuzestan.
He further said that most of the 30 projects are small-scale and will reach fruition within a 2-year period, adding once fully operational, the projects will make 760 million cubic feet of gas up for grabs to be used as feedstock to petrochemical facilities. The gas volumes are earmarked to be fed to Bidboland II and Maroon petrochemical projects.
By gathering the gas, the gas liquids output of National Iranian South Oil Company (NISOC) would increase by 38,000 barrels per day which would be then used as feedstock for Bandar Emam Petrochemical Plant.
Furthermore, the projects will lead to production of 1.6 million tons of ethane and heavier gas compounds, and 14 million barrels of gas liquids to be fed to petrochemical plants, he added.
The items will be roughly valued at $1,300 million and the petrochemicals produced from them could generate up to $2.6 million for the country.
He went on to add that nearly 16 million cubic meters of natural gas would be made available to NIOC which could be injected to oilfields or consumed as fuel.
Currently around 100 mcm/d of gas is burnt at gas flares in Masjed Soleyman, southwestern Iran, which could be otherwise used as feedstock for petrochemical plants.