Kaveh Zayer Kabeh - Mechanical & Energy Engineering Department, Shahid Beheshti University, Tehran, Iran
Ramin Haghighi Khoshkhoo - Mechanical & Energy Engineering Department, Shahid Beheshti University, Tehran, Iran

The comprehensive and reliable economic evaluation of using small-scale gas to liquid (GTL) technology for flaring reduction in Iran is needed to encourage policymakers and investors to consider the advantages of this technology. This study investigates the economic feasibility of using small-scale GTL technology for flaring reduction with ten different scenarios in Iran. Additionally, the possibility of using available facilities was considered in calculating the capital expenditure (CapEx) of plants to improve the reliability and accuracy of results. The effective economic factors are determined based on the announced policies and the data of technology developers. The results showed that using the small-scale GTL plants is economically justifiable in all conditions unless the oil price experiences a significant decline in the future years. In the existing status of Iran, the internal rate of return (IRR) of ۳۷.۹۳% was calculated for the proposed plant to reduce the high-pressure flaring in the Third South Pars Refinery. Moreover, relying on the available equipment which can be used in developing small-scale GTL plant increased the IRR of GTL plant by reducing the CapEx by ۲۵%. Using small-scale GTL technology for flaring reduction is a profitable alternative technology to prevent the extensive damages of the dissemination of toxic substances in the air, and it provides tremendous financial opportunity for investors in Iran.

Small-Scale Gas-to-Liquid Technology, Economic Cvaluation, feasibility study, Flare Gas Recovery