Iran plans to build five new refineries over the next four years to increase capacity from its current level of 1.85 million bpd to about 3.2 million bpd.
Abbas Kazemi, managing director of the National Iranian Oil Refining and Distribution Company (NIORDC) told Bloomberg that the country also needs about $14 billion in investment to upgrade five existing refineries to produce gasoline that burns more cleanly than grades currently available.
One of the new refineries, the 360,000 barrel-a-day Persian Gulf Star — scheduled to start operating by March — will process condensate, the light oil found in gas deposits, to make gasoline for transportation or naphtha for use in chemical plants.
Transforming condensate into gasoline will help Iran cut gasoline imports from the second quarter of 2017.
The refineries to be upgraded are at Isfahan, Tabriz, Tehran, Bandar Abbas and Abadan; the government will fund the upgrade of Abadan and is seeking investors to fund the others.
Private companies are developing the Siraf condensate refinery; the planned complex of eight units, each with a capacity of 60,000 bpd, will process condensate from South Pars into naphtha.
Japan’s Chiyoda Corporation is conducting a feasibility study with Mitsui & Co. on the Bandar Abbas project.
South Korea’s Daelim Industrial, and Japan’s Marubeni and Mitsubishi, are also interested in working on refinery projects.
Iran plans also to build three new refineries:
- the 300,000 barrel-a-day Bahmangenoo plant at the port of Jask;;
- a 150,000 barrel-a-day facility at Anahita in western Kermanshah province; and,
- the Pars refinery, which will process 120,000 barrels a day of condensate.