Countdown for Iran to Become Petrol Exporter
One of priorities of the Iranian Ministry of Petroleum under the present circumstances is to launch Persian Gulf Star Refinery. It is an important project for Iran as it would put an end to the country's gasoline imports.
Once operational, Persian Gulf Star Refinery will be producing 35 million liters of gasoline (Octane 95) and 14 million liters a day of gasoil a day. It might be interesting to note that gasoline consumption in Iran reached 70 million liters a day during Iran's New Year holidays in late March. Given the country's gasoline production, the startup of Persian Gulf Star would put an end to the country's imports of petrol.
On October 18, the distillation unit of this colossal refinery came on-stream in the presence of First Vice-President Es'haq Jahangiri and Minister of Petroleum Bijan Zangeneh.
At the inauguration, Jahangiri said the startup of Persian Gulf Star was one of the most important projects in Iran in the status quo, adding: "In this refinery, 360,000 b/d of gas condensate would be processed to produce jet-kero."
National Priority
Zangeneh said it was a priority for the country to put into operation Persian Gulf Star Gas Condensate Refinery. He expressed hope that the first phase would come online by next March.
"In the light of serious follow-up by the Iranian Ministry of Petroleum and all shareholders as well as the support of the government, we will soon see the operation of the first phase of the refinery with a production of 12 ml/d of euro-4 gasoline, 4.5 ml/d of euro-4 gasoil, 1ml/d of euro-4 kerosene and 1.3 ml/d of euro-4 liquefied petroleum gas (LPG)," he said. "Under the aegis of efforts made so far and finance injection and the import of equipment, the first phase of this refinery, already 93% complete, will become operational by the end of the current [calendar] year."
Noting that full operation of the Persian Gulf Star Refinery would end Iran's gasoline imports, Zangeneh said: "With a daily production capacity of 36 million liters of euro-4 and euro-5 gasoline, the country's gasoline production will total 100 ml/d."
The minister said that all products of this refinery would conform to euro-4 and euro-5 standards and the completion of the facility would make Iran an exporter of gasoline.
"The operation of this refinery will facilitate export of this product and help boost the quality of domestic fuel, in addition to ending gasoline imports," he said.
Zangeneh said the project has registered good progress, adding: "We are facing tough job ahead, over the coming three to four months for bringing the first phase of this refinery into operation. Undoubtedly, with the cooperation of all stockholders and the support of the Ministry of Petroleum we will soon see this national project come on-stream."
"Once first phase of this refinery comes online by the end of the year, the remaining phases will join the production cycle every six months and we will see the full operation of the project by the end of the [calendar] year 1396 (in March 2018) in case of sufficient financing and removal of problems," said the minister.
Phase 1 This Year
General Ebadollah Abdollahi, commander of Khatam al-Anbia Construction Headquarters that is steering this project, said: "After the startup of the distillation unit, the first phase of the refinery will come online with an output of 12 ml/d by the end of the current [calendar] year."
"By starting up the first phase of this refinery to produce 12 ml/d of euro-4 gasoline, the country will reach self-sufficiency in supplying national fuel needs. Phase 1 of Persian Gulf Star Refinery includes utilities, processing units, flares, interface and storage tanks, which cover 76% of the refinery," he said. "Phases 2 and 3 of the Persian Gulf Star Refinery will come online after a six-month interval. According to schedule, in case of timely financing, the refinery which has a capacity of 360,000 b/d of gas condensate will come online by the end of the [calendar] year 1396 with a capacity of 36 ml/d of euro-4 and euro-5 gasoline. It would be the largest gasoline production refinery in the country."
Production at Distillation Unit
Ahmad Adib, CEO of Persian Gulf Star Refinery, said the distillation unit, which came online, will keep producing until the first phase becomes operational.
He said the distillation unit produces four products, including naphtha.
He added that the distillation unit started trial run production in September and has since been supplying products.
"As from today, this unit will be regularly producing sour naphtha which is the raw material for gasoline production," said Adib. "The gasoline produced at this stage is not our final product, but due to lower sulfur content it has a higher quality than other grades of gasoil currently produced in the country."
Referring to the quality of products of this refinery, he said: "All products of this refinery, including gasoline, gasoil, kerosene and liquefied gas, will be in conformity with euro-4 and euro-5 standard."
The distillation unit accounts for half of total activity of this refinery as it brings online utilities (water, electricity, steam, air, nitrogen and fuel), processing units, flares, interface and storage tanks for gasoline production.
The first unit of this refinery is expected to become operational before the end of the calendar year. Phases 2 and 3 are scheduled to come online later in case no unexpected problems emerge and sufficient finance is provided.
Phase 1 of the refinery accounts for 76% of the total operation of the treatment facility. It would have the capacity to process 120,000 b/d of gas condensate and produce gasoline, gasoil, kerosene and liquefied petroleum gas in compliance with euro-4 standard.
Gasoline is an oil product which is considered to be strategic and highly consumed in Iran. The consumption of this energy commodity has remained unchanged after Iran removed subsidies and rationed fuel supply. Self-sufficiency in gasoline production was high on the agenda several years ago.
Over recent years, Iran has been investing $9 billion in old and new refineries in a bid to reach self-sufficiency in gasoline production and reduce sulfur content of gasoline.
Furthermore, so far, $14 billion of new projects have been defined in the aforesaid fields, $9 billion of which has become operational leading to a 1,500-ton decline in sulfur production.