Iran Poised to Become Gasoline Exporter
The startup of Phase 3 of the Bandar Abbas Gas Condensate Refinery, commonly known as the Persian Gulf Star refinery, will bring production from the world’s largest condensate treatment facility to 45 ml/d. Once fully operational, the refinery will help Iran become self-sufficient in domestic gasoline supply and even become an exporter. in the calendar year to March 2018 with the Tehran refinery accounting for 7 ml/d, Lavan refinery for 2.5 ml/d, Isfahan refinery for 2.5 ml/d and Shazand refinery for 11 ml/d. Sadeq-Abadi said Iran’s Euro-grade gasoil production had reached 40 ml/d, adding that Iran produced 34 ml/d of Euro-grade gasoil last December. He said the Tabriz refinery had increased its gasoil production by 3 ml/d, while the Bandar Abbas oil refinery had seen its gasoil output grow 14-16 ml/d. Sadeq-Abadi said Iran’s Euro-grade gasoil production capacity increased from 23 ml/d to 40 ml/d. “By the end of the current calendar year [in March], 12 ml/d of more gasoil would have been supplied by Phase 3 of the Persian Gulf Star refinery, which would bring the gasoil output to 52 ml/d,” he added. NIORDC has projects on the agenda to increase Iran’s gasoil production capacity. One of them targets the Isfahan refinery which would supply an extra 16 ml/d of Euro-grade gasoil by March 2019. That would cover the bulk of transportation sector needs. Gasoil treatment sections at Iran’s refineries have slashed the sulfur content of gasoil from 10,000 ppm to 50 ppm, which would significantly reduce sulfur-related environmental pollution. Exporting Surplus Petroleum ProductsAlthough crude oil refining capacity has significantly increased in the country, Iran remains a country with high gasoline consumption. As Sadeq-Abadi said, if Iran’s gasoline consumption growth is assumed at 7%, the gap between gasoline production and consumption would reach 190 ml/d by 2033. To counter this challenge, a variety of policies must be envisioned, including diversification of fuel mix, expanding public transportation network, using low-consumption vehicles, diversifying the fuel mix of vehicles and even using hybrid cars. Sadeq-Abadi said that would need $100 billion in investment to build refineries and related industries including pipelines and pumping stations. “Or we would need to import gasoline worth $100 million. Neither is possible because that would cut Iran’s crude oil exports and foreign exchange revenue,” he added. “To resolve this problem, we need to reform our consumption pattern in order to create a safety margin which would be converted into wealth,” said Sadeq-Abadi. He said that NIORDC would be focusing on using the surplus capacity of petroleum products in exports and also trade on the Iran Energy Exchange (IRENEX). “There are important opportunities for investment in the refining industry. For that purpose, we can use foreign investment or foreign financing and tap the National Development Fund of Iran (NDFI),” said Sadeq-Abadi.The refinery is the first of one designed to run on condensate with a capacity of 360,000 b/d. The main sections of the facility are distillation, liquefied gas treatment, catalytic conversion, naphtha treatment, isomerization, kerosene and gasoil treatment. The objective of the refinery has been to produce gasoline, gasoil, liquefied petroleum gas (LPG) and jet fuel alongside the existing Bandar Abbas oil refinery. Phase 1 of this refinery came on-stream in January 2018 and Phase 2 become operational six months later. More than 75% of the equipment used at the condensate refinery is made in Iran. Ali-Reza Sadeq-Abadi, CEO of National Iranian Oil Refining and Distribution Company (NIORDC), said Iran produced on average 67.8 ml/d of gasoline in the calendar year to March 2018, which reached 87.9 ml/d this calendar year. Phase 3 of the Persian Gulf Star aside, Iran’s gasoline production averages 88 ml/d. During the first two months of the current calendar year, four Iranian refineries – Shazand, Arak, Isfahan and Abadan – were overhauled. Sadeq-Abadi said Iran’s gasoline production capacity was 95-97 ml/d in the current calendar year. He said that Iran’s gasoline consumption peaked in summer 2017. He said Iran’s average gasoline consumption stood at 87 ml/d. “Once fully operational, each phase of the Persian Gulf Star refinery added 12 ml/d of Euro-grade or 15 ml/d of regular gasoline to national production, bringing the country’s gasoline production capacity to 105 ml/d,” he told reporters at the inauguration ceremony of Phase 3 of the Persian Gulf Star refinery. He said that Iran had stopped importing gasoline since last October.Euro-Grade Gasoil Output UpSadeq-Abadi said Iran’s gasoil production stood at 94 ml/d on average in the calendar year to March 2018, 21 ml/d of which was Euro-grade gasoil. He added that the figures stood at 100 ml/d and 28 ml/d, respectively for the current calendar year. The official said Iran’s Euro-grade gasoil production capacity was 23 ml/d