Iran’s associated gas, which has long been flared in oil fields, can be transformed into a key source of sustainable energy for industries by attracting private sector investment. Capturing this gas can help reduce the country’s gas imbalances, lower greenhouse gas emissions, and create higher value-added products within the oil and gas value chain.
A report prepared by the Mehr News Agency emphasizes that due to limited government financial resources, private sector participation is essential for implementing associated gas recovery projects. Investors can participate through models such as direct investment, BOT contracts, small-scale processing units, and guaranteed purchase agreements, while using flexible technologies to accelerate project execution.
To attract investment, clear economic and contractual frameworks are required, including transparent pricing, product purchase guarantees, defined energy sales pathways, and reduced regulatory risks.
It is also recommended that associated gas recovery be implemented as a national program with prioritized fields and direct links to industrial consumers. This would strengthen energy security and help prevent industrial production cuts during periods of gas shortages.