First Mini Refinery Starts Operation in Khorramshahr

First Mini Refinery Starts Operation in KhorramshahrFirst Mini Refinery Starts Operation in Khorramshahr

Iran’s first mini oil refinery, for primary processing of hydrocarbon raw materials, has become operational in the southwestern city of Khorramshahr, Shana news agency reported.

It was financed and built by the private sector at a total cost of 500 billion rials ($18.15 million at official exchange rate).

Managing director of the Peyman Ramshir Polymer Refinery, Parviz Khodadadi, said the facility can produce between 5,000 to 8,000 barrels of oil products on a daily basis. Euro-4 gasoline accounts for 70 percent of the refinery’s output and the remaining products include gasoil and polymeric bitumen.

Khodadadi noted that the mini refinery takes gas condensate, crude oil and naphtha as feedstock.

The project in Khuzestan Province has created 320 jobs.

It was built in less than two years under the supervision of a 70-member group of experts. “It took 300,000 man-hours to be completed,” Khodadadi stated.    

All the equipment for electricity and steam generation in the refinery has been built by Iranian engineers, he said, adding it has a considerably lower rate of pollution compared to similar mini oil refineries in the world.

According to Shana, mini refineries can process up to 60,000 barrels of crude oil per day. There are two types of mini refineries: the upstream ones that refine crude oil to produce gasoline, gasoil and mazut, and the downstream refineries that take the output of upstream refineries to produce 150 by-products like bitumen and motor oil.    

Iran plans to construct mini-refineries in the oil-rich province of Khuzestan, particularly in Arvand Free Zone.

The refineries are to be fed by Abadan Oil Refinery. More than 110 small and medium-sized petrochemical units are also planned to be constructed in Arvand region, close to the country’s largest oil reserves, thus having a great potential for the development of downstream and petrochemical sectors.