Iran; Becomes OPEC Largest Gasoline Producer?
ran’s refining industry has been through ups and downs over the past years. The government’s measures for a quantitative and qualitative upgrade of refined petroleum products came to fruition under the 11th and 12th administrations at a time the country was faced with the toughest ever economic sanctions. However, Iran’s refining industry continued its own way. Ali-Reza Sadeq-Abadi, CEO of National Iranian Oil Refining and Distribution Company (NIORDC), recently announced that Iran was the largest producer of gasoline in the region, as well as OPEC’s first gasoline and second gasoil producer. Iran’s gasoline production capacity currently stands at 112 ml/d. The country’s current output stands at 107 ml/d, up from 51 ml/d in 2012 when no euro-grade fuel was produced. In 2012, Iran had also to import 10 ml/d of gasoline in order to supply domestic demand, but today Iran has become self-sufficient in gasoline production and is able to export fuel at figures much higher than that of imports in the previous years. A review of activities in Iran’s refining industry in the past six years shows how Iran transformed from a gasoline importer into a gasoline exporter.91ml/d Gasoline OutputThe euro-grade oil and gas production in Iran and the increased quality of refined petroleum products happened for the first time under the 11th and 12th administrations. Clean gasoil and gasoline was for the first time distributed in 2012 and 2013 respectively, but national distribution of this grade of fuel in big cities reached its climax under the 11th and 12th administrations.The enhanced fuel quality in the country came at a time the sulfur content of gasoil supplied by Iranian refineries fell to its minimum level from about 10,000 ppm. A statistical review of figures and data about petroleum products in recent years shows that between 2013 and 2018, Iran’s euro-grade gasoline production increased from 3.3 ml/d to 25 ml/d. Sadeq-Abadi recently said as the euro-grade gasoil output at the Persian Gulf Star refinery and the Isfahan refinery would respectively reach 15 ml/d (4ppm sulfur content) and 20 ml/d (sulfur content less than 10 ppm), the total euro-grade
gasoil output (sulfur content below 10 ppm) would reach 73 ml/d by next March. Imam Khomeini refinery of Shazand with an 11ml/d output, Tehran refinery with a 7ml/d output and Lavan refinery with a 2.5ml/d output are instrumental in the country’s euro-grade gasoil production. In October, Sadeq-Abadi said Iran’s euro-grade gasoline production had reached 91 ml/d, contributed by the Persian Gulf Star refinery (45ml/d), Imam Khomeini refinery (17ml/d), Isfahan refinery (12ml/d), Bandar Abbas refinery (12ml/d), Tabriz refinery (3ml/d) and Lavan refinery (3ml/d).Persian Gulf Star RolePersian Gulf Star gas condensate refinery is the largest condensate treatment facility in the world. This facility whose equipment is mainly domestically-sourced is processing 450,000 b/d of condensate supplied from the giant South Pars gas field to be converted into light products. The construction of Persian Gulf Star refinery began by receiving a daily feedstock supply of 360,000 barrels from South Pars in three 120,000 b/d phases from 2006. The facility was built in order to guarantee sustained gas recovery from South Pars, reduce environmental pollutants and help Iran’s self-sufficiency in the supply of strategic energy products. The third phase of this refinery came online in January 2019 with an output of 45 ml/d of gasoline and 15 ml/d of gasoil. That raised Iran’s gasoline production to 105 ml/d. Iran ended gasoline imports then. The Persian Gulf Star refinery is currently supplying 47 ml/d of euro-5 gasoline.Shazand Refinery Development After Persian Gulf Star refinery, Imam Khomeini refinery of Shazand is supplying 17 ml/d of gasoline and 11 ml/d of gasoil. The objectives sought in the development of Imam Khomeini refinery include increasing the nominal capacity of the facility from 169,000 b/d to 250,000 b/d, increasing gasoline production capacity from 4.6 ml/d to 17 ml/d, reducing fuel oil output, desulfurizing products and supplying euro-5 products.Bandar Abbas Capacity EnhancementBandar Abbas refinery is among influential refineries in Iran with an output of 15 ml/d of gasoil and 12 ml/d of gasoline. The gasoline treatment unit of this refinery was launched early this year. The main philosophy behind improving the quality of Bandar Abbas refinery’s products was to improve the quality of products in line with environmental objectives and reduce the sulfur content of gasoil in compliance with euro-5 standards.