Iran Plans to Sell Associated Gas Being Burnt in Oil Fields

Iran is planning to sell associated gas being burnt in oil fields in the country.

According to Shana New Agency, this year’s budget has permitted the petroleum ministry’s subsidiaries to sell the associated gases being burnt in the oil fields through holding tender and spend the revenue in environmental projects.

Base price of associated gas will be one third of the price of processed natural gas delivered to industries, the news agency said.

Iran is currently undertaking a study on gathering associated gases being burnt in 6 oil fields in Arvandan region. The study which started last July is expected to come to an end in December.

National Iranian Oil Company (NIOC) has said that a bylaw be drawn up and grounds must be prepared for the private sector to be active in this field.

Iran holds the second-largest natural gas reserves and fourth-largest oil reserves in the world.

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