Iran said on Friday that it is working with Asian investors and builders to revamp several of its key refineries.
Abbas Kazemi, the managing director of the National Iranian Oil Refining and Distribution Company (NIORDC), told the domestic media that an agreement has been signed with companies from South Korea to renovate the refineries in Isfahan and Abadan.
Kazemi said the Korean companies – which he did not name – have already made a progress of 20-30 percent over Isfahan refinery. Once the operations finish, the refinery will produce a larger volume of Euro-IV gasoline and gas oil and less mazut, the official emphasized.
Elsewhere in his remarks, Kazemi said talks have started with Chinese lenders to fund another project to re-develop Abadan refinery.
He emphasized that the project is among the key current priorities of Iran’s Ministry of Petroleum.
Abandan refinery re-development is estimated to require about $3 billion and the prime objectives will be increasing the quality of strategic products such as gasoline and gas oil, Kazemi emphasized.
Poor quality gasoline and gas oil is largely blamed for air pollution in Iran – specifically in big cities including Tehran and Isfahan. The government of President Hassan Rouhani has already made it clear that increasing the quality of gasoline and gas oil that the country’s refineries produce is a top priority of its economic agenda.
NIORDC says Iran’s refineries are currently producing 62.5 million liters per day of gasoline. However, the figure is not enough to satisfy the domestic consumption that stands at an average of 70 million liters per day. Therefore, around 8 million liters of gasoline is imported into the country per day.
Iran is currently constructing a refinery in Bandar Abbas that feeds on gas condensate. The project – Persian Gulf Star – is expected to produce 12 million liters per day of Euro-IV gasoline only in its first phase thus literally making the country independent from gasoline imports.
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