Tabriz Oil Seeks Financing for $2 Billion Refinery Upgrade

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Researched by Industrial Info Resources (Delhi, India)--As the Iranian government reduces state-funding to the oil and gas sector, the country's oil and gas regulator, National Iranian Oil Refining & Distribution Company (NIORDC) (Tehran, Iran), and Tabriz Oil Refining Company (TZORC) (Tehran) are now seeking financing from private investors and multilateral financial institutions to fund the proposed $2 billion expansion and upgrade project at Tabriz Refinery.

As per the recently announced Iranian oil and gas policy, the government will fund only 20% of the total estimated cost of any oil and gas project, while the developers, along with the oil and gas regulatory body, would be responsible for arranging the remaining 80%. As a result of this change in policy, seven major refinery projects, as well as pipeline and drilling projects, for which feasibility and engineering studies were already completed, have been put on hold, and financial closures are pending.

As a part of the expansion, TZORC intends to construct new units inside the existing Tabriz Refinery, under the title "TZORC Products Upgrading Projects" (PUP), to meet Euro V standards for kerosene and gas oil. A required sulfur plant to convert produced acid gases with 99.9% sulfur recovery and NIORDC product specification (accompanied with consideration of environmental issues and energy conservation measures) will constitute the building blocks of this project.

The major units that have been proposed to be added include gas oil and kerosene hydrotreaters; a sulfur recovery unit; a tail gas treating unit; a captive power plant; and other associated offsites and utilities. The project is currently being implemented by National Iranian Oil Engineering & Construction Company (Tehran).

Tabriz Refinery was built with a capacity of 110,000 barrels per day to cover the northern need for fuels. It has a good access to international waterways, import facilities and jetties, railways and pipelines.

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