National Iranian Oil Investing $21 Billion to Build Seven Refineries

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a bid to boost Iran's crude and gas refining capacity and reduce dependence on gasoline imports, state-owned National Iranian Oil Refining and Distribution Company (Tehran) is in the process of setting up seven refineries across the country at an aggregate investment of $21 billion, the Mehr News Agency reported. The refineries, all of which are scheduled to begin operation by 2012-13, will increase Iran's refining capacity of crude oil and gas condensate by 1.57 million barrels per day (BBL/d) and gasoline production by 110 million liters per day (LPD). Most of the investment will be procured from the private sector.

The Persian Gulf Star refinery is being set up in Assalouyeh in southern Iran. The unit will have a refining capacity of 360,000 BBL/d of gas condensate and will produce gasoline and jet fuel, among other products. Construction is about 10% complete and the refinery is expected to come on stream in 2011.

The Caspian refinery is being developed in Gorgan in northeastern Iran's Golestan province. The unit will have a refining capacity of 300,000 BBL/d of crude oil procured from countries in the Caspian Sea region. It will have a production capacity of 20 million LPD of gasoline and 11 million LPD of gas oil, some of which will be exported to Afghanistan, Pakistan and Turkey.

The Hormoz refinery is being developed in Bandar Abbas at a cost of $4 billion. The unit will have a refining capacity of 300,000 BBL/d of heavy and extra heavy crude oil. Construction is about 5% complete. The project is aimed at maximizing Iran's production of gasoline and middle distillate products compliant with European standards.

The Khuzestan refinery in the Arvand Free Zone near Abadan City will cost $3.9 billion-$4.2 billion. The unit will refine heavy crude oil procured from the Azadegan and Yadavaran oil fields. It will have a refining capacity of 180,000 BBL/d of heavy crude oil and produce 12.6 million LPD of diesel oil, 10 million LPD of Euro IV-compliant super gasoline, 5 million LPD of liquefied gas, 3 million LPD of jet fuel, and 440 tons per year of sulfur. Construction is about 1.4% complete, and the refinery, which will be developed and operated by the private sector, is slated for commissioning by 2011.

The Shahriar refinery in Tabriz will require an investment of more than $2.8 billion. The unit will have a refining capacity of 150,000 BBL/d and a gasoline production capacity of 70,000 BBL/d. The project is aimed at increasing Iran's output of oil products with enhanced quality obtained through reduced sulfur content in gas oil, Euro V compliance for gas oil, and a fluid catalytic cracking unit. Construction is about 3% complete.

The Anahita refinery in western Iran's Kermanshah province will cost about $3.5 billion. The unit will have a production capacity of 150,000 BBL/d.

The Pars refinery in Shiraz will cost about $1.1 billion. The unit will have a refining capacity of 120,000 BBL/d of crude. Construction is about 3% complete.

Despite being the world's fourth largest producer of oil, Iran lacks adequate refining capacity and meets 40% of its gasoline requirements through imports of 95,000 BBL/d to 115,000 BBL/d. The country is also looking to invest $7 billion toward the enhancement of existing refining facilities by 2012.

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