Iran Expands Shazand Arak Refinery to Augment Gasoline Production

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Researched by Industrial Info Resources India (Delhi, India)--Iran's state-run oil refiner, Imam Khomeini Oil Refining Company (IKORC), has augmented the production capacity of its Shazand Arak refinery by about 55% to increase the production of gasoline in Iran. IKORC recently completed the $3.3 billion expansion program at the refinery, which is located in the Markazi Province of Iran.

According to IKORC sources, the new units have started commercial operation following the completion of trial runs. The expansion has enabled the refinery to process cheaper and heavier crudes and to produce gasoline and diesel that conforms to Euro-V standards, besides increasing production of liquefied petroleum gas (LPG) from 500 to 2,000 tons per day, and premium gasoline from 1.2 million to 3.2 million liters.

The expansion project was conceived in 2003 as a part of the Iranian government's plan to upgrade its operational refineries. The expansion of Shazand Arak involved augmentation of the crude processing capacity of the refinery from 160,000 barrels per day (BBL/d) to 250,000 BBL/d through the addition of a second, 80,000-BBL/d crude distillation unit. It also entailed the addition of various other downstream units, such as octanizer, naphtha, kerosene, gas oil and cracked gasoline hydrotreaters, reduced crude desulfurization, residue fluid catalytic cracking, isomerization, LPG merox and propylene recovery units.

According to Industrial Info's Refining Unit Database, the new units are:

• The crude distillation Unit 2, which is licensed by JGC (Japan) and has a capacity of 80,000 BBL/d.
• The naphtha hydrotreater Unit 2, which is licensed by Axens (France) and has a capacity of 33,000 BBL/d.
• The octanizer unit (reformer), which is licensed by Axens and has a capacity of 20,000 BBL/d.
• The isomerization unit, which is licensed by RIPI (Iran) and has a capacity of 8,500 BBL/d.
• The kerosene hydrotreater unit, which is licensed by Axens and has a capacity of 31,500 BBL/d.
• The gas oil hydrotreater unit, which is licensed by Axens and has a capacity of 53,000 BBL/d.
• The reduced crude desulfurization unit, which is licensed by UOP (England) and has a capacity of 69,180 BBL/d.
• The residue fluid catalytic cracking unit, which is licensed by UOP and has a capacity of 94,387 BBL/d.
• The RFCC LPG merox unit, which is licensed by UOP and has a capacity of 28,105 BBL/d.
• The propylene recovery unit, which is licensed by UOP and has a capacity of 28,105 BBL/d.
• The cracked gasoline hydrotreating unit, which is licensed by Axens and has a capacity of 50,500 BBL/d.

The project, which was slated to begin operations by June 2010, was constantly dogged with financial problems, equipment delays and geopolitical issues, which have delayed commercial operations by almost three years.

The major contractors involved were JGC Corporation (TSE:1963) (Japan), MAPSA (Iran), Enerchimi (Iran), ODCC (Iran), Sazeh Consultants (Iran) and SEI (0180608D:CH) (China).

IKORC was promoted by National Iranian Oil Refining and Distribution Company (NIORDC) (Iran) to build and operate the Shazand refinery, which commenced operations in 1993. The refinery is one of the most modern refineries in Iran, with lead-free gasoline as one of the most valuable products. Other major products of the refinery include LPG, motor gasoline, kerosene, gasoil, light fuel oil, bitumen, sulphur, petrochemical raw material, jet fuel, etc.

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