Iran is on the crossroads of development in the petrochemicals industry, as it incorporates a new and effective strategy to enhance the oil refining capacity for the condensate and crude oil, by over 70 percent in the coming four years. Expansion will be through implementation of a two way process:
- Limiting the imports of gasoline;
- Increasing the sale of high quality fuel in the domestic market.
Presently, Iran is in the desperate need of around $14 billion in investment to improvise oil production of gasoline at five existing refineries. The refineries ready for up-gradation and improvisation are located at Isfahan, Tabriz, Tehran, Bandar Abbas and Abadan.
The government will pay for Abadan plant’s modernization and is seeking investors to fund the others
This improvisation would help in production of the gasoline, which burns cleanly and far healthier than the presently available gasoline within the country.
National Iranian Oil Refining & Distribution Co., one of the leading oil producers in the country is also devising the strategy to raise the capacity of oil production from the current 1.85 Million to 3.2 million barrels a day by the year 2020, in the Iran’s five oil production plants.
Iran, OPEC’s third-largest oil producer, had been working hard to increase energy production, after international sanctions restricting the entry to oil markets were eased in January, 2016. After the easing of sanctions, Iran has been successful in restoration of oil production near to pre-sanctions levels. Quite interestingly, Iran increased natural gas output at the offshore South Pars field, which is astonishingly the world’s largest deposit.
Iran is currently facing extreme shortage of gasoline, and with the development of new refineries and upgrading the old ones, transformation of the condensate into gasoline will be of great help to Iran. Moreover, this would also help in cutting the imports, which is all set to begin from the Q2 of the year 2017. Iran now strategizes on using its condensate for making gasoline for transportation or naphtha for the chemical plants.
Included in the fray are several private oil refining companies, which are establishing the Siraf condensate refinery complex at the Southern port of Assaluyeh. It would be a planned complex comprising eight units, each with production of 60,000 barrels a day, and incorporated with the technology to process condensate from South Pars into naphtha.
Iran has strategic plans ready to construct three new refineries, with the capacity of 300,000 barrel-a-day, in Bahmangenoo plant at the port of Jask; refinery with 150,000 barrel-a-day capacity at Anahita in western Kermanshah province, and the Pars refinery, which has the capacity of processing 120,000 barrels a day of condensate.