Fri Sep 8, 2017 09:13AM
France's Sofregaz on Wednesday won a deal from the National Iranian Oil Company (NIOC) to recover natural gas flared at South Pars Phase 2 and 3.
France's Sofregaz on Wednesday won a deal from the National Iranian Oil Company (NIOC) to recover natural gas flared at South Pars Phase 2 and 3.

Iran says it has serious plans to attract as much as €500 million in foreign investments for projects to collect flare gas in its South Pars energy hub. 

The announcement was made only days after the country awarded a deal worth €42 million to a consortium led by France’s Sofregaz for a similar project at the treatment plant of South Pars Phases 2 and 3.

“Reducing the level of industrial pollutants is an important issue that has been highlighted in Iran’s upstream documents and is a key concern of the officials,” Mohammad Meshkin-Fam, the managing director of Pars Oil and Gas Company (POGC), was quoted by the domestic media as saying.

“The deal with Sofregaz is meant for the same purpose,” Meshkin-Fam told reporters.

He further expressed hope that this would be the starting point for more agreements at all 13 treatment plants in South Pars, stressing that no natural gas should be eventually flared in the energy hub. 

Based on the agreement which was signed on Wednesday, the French company would cooperate with Iran’s Samin Sazeh over the project.

Elsewhere in his remarks, Meshkin-Fam said only 10 countries are responsible for 75 percent of the overall industrial gas released into the atmosphere and said Iran was one of those countries. 

“Iran is the leading country in the Middle East in terms of releasing pollutant gases into the atmosphere,” he said. “We hope that this situation would change”. 

POGC chief further emphasized that the treatment plants in South Pars had been designed in a way to prevent the flaring of excess natural gas produced at fields.

However, he said the multiple-year sanctions against the country had undermine the performance of the plants to the same connection. 

Sofregaz will be the second French company that has won a deal in Iran's energy sector. In early July, Total signed an agreement with the National Iranian Oil Company (NIOC) to develop Iran's South Pars Phase 11.  Total is expected to invest around $5 billion in the project which it will implement together with CNPC of China and Petropars of Iran.