The first development phase of Abadan Refinery in Khuzestan Province, which is expected to be completed by March 2022, will not only help improve environmental conditions but also increase the supply of products complying with Euro-5 emission standards, director of the National Iranian Oil Refining and Distribution Company said.
“Registering an 85% progress, the venture includes the installation of a new crude distillation unit to replace three old units built 70 years ago,” Jalil Salari was also quoted as saying by IRNA.
“The crude processing facility is being equipped with a sulfur recovery unit to reduce mazut output to less than 25% from the present 50%,” he added.
Salari noted that the project, that has so far cost $4 billion, will also boost the production of Euro-5 compliant gasoline and jet fuel by 10%.
Iran's mazut output, a heavy low quality fuel oil, is primarily sent to thermal power plants to run their turbines in winter when natural gas supply is limited.
Other refineries that earlier started to implement the “zero-mazut plan” include Tehran, Isfahan, Tabriz and Shazand.
Built in 1912, Abadan Refinery is the first of its kind in Iran and was once the largest in the world.
The facility was heavily damaged during the 1980-88 Iran-Iraq war. It is now operating with a daily capacity of refining 250,000 barrels of crude.
“Although the new distillation unit will have a production capacity of 210,000 barrels per day, 40,000 less than the combined capacity of the three decommissioned units, it is exported to help upgrade gasoline and diesel quality to the Euro-5 standards.”
According to the official, the unit will reduce the production of heavy products such as kilns while increasing the output and quality of value-added light-duty products such as jet fuel.
Jet Fuel
NIORDC, a subsidiary of the National Iranian Oil Company, is producing and exporting jet fuel seasonally and on demand.
Pointing to two types of jet fuel, namely LL100 produced in Abadan Refinery in southern Iran and Jp4 used in passenger and jet planes in addition to trainer aircrafts and propellers, Saeid Mahjoubi, production coordinator at NIORDC, said they can compete with foreign brands not only in quality but also in terms of price.
Jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is generally of a higher quality than what is used in heating or road transport. It often contains additives to reduce the risk of icing or explosion due to high temperature, among other properties.
Mahjoubi noted that the main objectives of Abadan Refinery are to produce clean and value-added oil products, diversify production, reduce crude oil exports, help protect the environment, lower energy consumption, maximize the utilization of domestic capacities, improve the knowledge and experience of human resources and move toward sustainable development.
Inadequate Investment
Inadequate investment has severely impaired NIOC’s ability to process crude, which explains the firm’s declining refining capacity over the past eight years.
According to data from the Oil Ministry and NIOC, the failure to capitalize on the private sector’s experience, absence of rehabilitation plans and the focus on the sale of low value-added products have reduced oil processing capacity by 231,000 barrels per day since 2013.
Refining complexes across Iran processed 2.3 million barrels of crude per day in 2013, which capacity has now dwindled to 2.1 million, registering an 11% decline.
Abadan, Bandar Abbas and Isfahan refining facilities have experienced the largest decline of 68,000 barrels, 48,000 barrels and 44,000 barrels in processing capacity respectively over the eight-year period.
According to Oil Minister Javad Owji, boosting the quality and output of oil refineries and building new refineries are on the agenda to help increase Iran's oil refining capacity by 1.5 times in five years.
“Development programs are underway to bring the country’s refining capacity, including crude oil and gas condensates, to 3.5 million barrels per day from the current 2.1 mb/d,” Owji said.
“Investors have been identified for generating and developing refining capacity, and they have signed agreements with the Oil Ministry in this regard.”
