New refineries to raise refining capacity by 30%: Official
The construction of petro refineries across Iran will increase the country’s refining capacity by 30 percent, which is currently at 2.3 million barrels per year, announced the deputy oil minister for planning affairs.
“Creating capacity and completing the value chain in the oil industry is one of the priorities of the Oil Ministry aimed at preventing sales of unprocessed oil as well as creating added value for the country,” Houshang Falahatian said, reported IRNA.
International energy companies predict that the demand for petrochemical products will increase significantly in the coming years, and therefore the development of petro refineries seems a necessity in Iran. Development of petro refineries is much easier and relatively cheaper in Iran than in other countries, so the country can play a role in regulating the price of petrochemical products in the world due to its access to energy sources along with its capacity for the development of petro refineries.
And most importantly, if the country’s refining capacity expanded to the level of crude oil feed produced in the country, the sanctions on Iran’s oil industry would be practically ineffective.
In March 2023, Iranian President Ebrahim Raisi inaugurated the first section of the second phase of the development plan of Abadan oil refinery in Iran’s southwestern province of Khuzestan near the coast of the Persian Gulf despite years of Western sanctions against the Islamic Republic. The first section of the second phase will raise production capacity at the site by thousands of barrels of crude oil per day.
Promoting the quality of the products to meet the Euro 5 emission standard, lowering the production level of Mazut heavy fuel oil from the existing 45 to 26 percent, elevating the production level of liquefied natural gas (LNG), diesel fuel and gasoline by 53, 23 and 6 percent respectively, and generation of 7,000 jobs have been described as the primary objectives of the second phase of the development plan.
A hydrogen production unit (HPU), hydrocracker unit (HCU), liquefied petroleum gas (LPG) production unit, crude oil distillation unit (CDU), vacuum distillation unit (VDU), utility facilities and other installations have been constructed as part of the project.
The first section of the second phase of the development plan of Abadan oil refinery was put into operation thanks to the strenuous efforts made by Iranian knowledge-based companies, as well as the high technical know-how and expertise of Iranian engineers in defiance of Western sanctions and coercive measures.