Phase II of Condensate Refinery Launched
Iran Gasoline Output up 12 ml/d
Phase II of Iran's gas condensate refinery in Bandar Abbas was inaugurated by President Hassan Rouhani.
The Bandar Abbas Gas Condensate Refinery, known as Persian Gulf Star, will see its Euro-5 gasoline output increase by 12 ml/d.
Increased gasoline production was a strategic policy pursued by the Rouhani administration to reduce dependence on imports. Over the past five years, Iran has raised its gasoline output by 45%.
"Over this period (past five years), Euro-4 and Euro-5 gasoline production has increased 12 to 13-fold," Rouhani said in his opening remarks.
Phase I of the refinery become operational in April 2017. Rouhani expressed hope that Phase III of the treatment facility would come online by next March.
He criticized the growing consumption of energy, particularly gasoline, in Iran, saying: "Iran is home to 80 million with a daily gasoline consumption of 80 million liters. Should we manage to save on gasoline consumption and contain overconsumption, we will become a gasoline exporter."
He said that the Iranian Ministry of Petroleum had managed to increase gasoline production and boost export of petroleum products like gasoil, end Iran's dependence on Turkmen gas imports and inaugurate more phases of the South Pars gas field over the past five years.
"We take pride in all these achievements," said the Iranian president.
Euro-4 Gasoline Up 14-Fold
Iran's Minister of Petroleum Bijan Zangeneh said the United States was targeting Iran's gasoline rationing scheme before imposing sanctions.
"The biggest step was taken [to counter US sanctions] with the construction of Persian Gulf Star refinery," he added. "Had this project not been launched, we could hardly export 360,000 b/d of gas condensate, which is fed into this refinery."
The minister said Phase II of Persian Gulf Star would help produce 24 ml/d of gasoline at this facility.
Referring to Euro-4 gasoline production in Iran, Zangeneh said: "Euro-4 gasoline production in 1392 (calendar year to March 2014) was 3.4 ml/d, which reached 28 ml/d in 1396. This figure will increase 14-fold to 54 ml/d this year (1397)."
"Furthermore, regular gasoline production in Iran has been raised from 59.5 ml/d to 90 ml/d," he said.
Zangeneh said Iran's annual gasoline production growth averaged 8 to 9 percent.
"In 1391, 63.5 ml/d of gasoline was consumed in the country, which recently reached 83.5 ml/d. Of course, it will increase in coming months," the minister added.
He said Euro-4 gasoline and gasoline were being distributed in all big cities in Iran.
"Ninety-four gas stations are distributing Euro-4 gasoline and gasoil all across the country. The number will reach 200 over two months," he added.
Zangeneh said the hydrogen treatment unit of Tabriz refinery would become operational in August with a daily output of 6 million liters of gasoil.
"The hydrogen treatment unit of the Bandar Abbas refinery is coming online in October with a daily output of 12 million liters of Euro-4 gasoil. Operating hydrogen treatment section of the Isfahan refinery for Euro-4 production is on the agenda," he added.
The Iranian minister of petroleum also said that the Lavan refinery had seen its Euro-4 gasoline production grow 2 ml/d.
Zangeneh said the Siraf refining project, which includes eight small gas condensate refineries, would require 480,000 b/d of gas condensate. "We are envisioning selling its stocks to public," he said.
100 ml/d Gasoline Output Capacity
Ali-Reza Sadeq-Abadi, CEO of National Iranian Oil Refining and Distribution Company (NIORDC), said the distillation unit of Phase III of the Persian Gulf Star refinery would come online in October.
He said Iran's gasoline production capacity would reach 100 ml/d by December, adding that Phase III of the refinery would increase Euro-5 gasoline production capacity by 12 ml/d.
"We are trying to produce 80 ml/d of Euro-5 gasoline and get closer to the target production capacity of 100 ml/d," said Sadeq-Abadi.
He said that the Persian Gulf Star refinery would help supply the feedstock needs of petrochemical plants.
"Had Persian Gulf Star not been launched it would become tough to sell 240,000 l/d of South Pars gas condensate after probable re-imposition of sanctions," said Sadeq-Abadi, who is also a deputy minister of petroleum. "Therefore, this refinery has more advantages than daily gasoline production."
"Our goal in supplying extra gasoline is to have strategic stocks and we have no plan for exports," he said.
Sadeq-Abadi referred to the 74% share of Iranian engineering and manpower in the Persian Gulf Star refinery construction, saying: "The remaining 26% of the project was the outcome of foreign engineering and purchase. However, the commissioning of the refinery was 100% Iranian."
Sadeq-Abadi said the refinery's petroleum products were valued at $24 million.
Built near the Bandar Abbas oil refinery, the condensate refinery is fed by 360,000 b/d of condensate.
Once fully operational, the facility would be producing 36 ml/d of gasoline, 14 ml/d of gasoil and 3.37 ml/d of jet fuel.