The construction of Sohrevardi Safahan Petro-Refining Company, a subsidiary of Isfahan Oil Refinery, has started in Isfahan and is expected to be completed in four years, managing director of the company said.
“The company seeks to have a daily income of $6 million when it becomes fully operational by 2026,” Mohammad Sarmadi was also quoted as saying by the Oil Ministry’s news agency Shana.
“The company, which will have 17 production units, will produce propylene and gasoline,” he added.
Iran produces 115 million liters of gasoline per day but needs to add to its output capacity due to rising consumption.
Propylene is a colorless gas with a naturally pungent smell. It is a key commodity in the petrochemical industry and can be transformed into value added products like polypropylene and create jobs in the downstream petrochemical sector.
Polypropylene – the world's second widely produced synthetic plastic after polyethylene – is used in a variety of applications, including packaging and labeling, textiles, carpets, stationery, plastic parts and reusable containers, laboratory equipment, loudspeakers, automotive parts and polymer banknotes.
Isfahan Oil Refinery Company has also launched projects to help boost the production of crude oil derivatives compliant with Euro-5 emission standards.
The projects, which are being completed at an estimated cost of $600 million, entail the construction of a diesel treatment unit and the installation of utility and offsite units, in addition to the completion of fuel storage tanks with a capacity of 100,000 liters of diesel per day.
The scheme to reduce sulfur content in vacuum distillation residue – the end product of crude oil distillation, including high molecular weight PAH, asphaltenic components and waxes – has also registered over 40% progress and is expected to become operational in three years at an estimated cost of $1 billion.
The refining company now produces 4 million liters of Euro-5 diesel per day and output will rise fivefold in the near future.
Established in 1979, the refinery produces 25% of the country’s petroleum products. It also produces 16 million liters of Euro-4 diesel, 8 million liters of Euro-4 and 12 million liters of Euro-5 gasoline per day.
Isfahan’s refinery is the main supplier of feedstock to Sepahan Oil Company, Isfahan Petrochemical Plant, Arak Petrochemical Plant, Jey Oil Refining Company and Iran Chemical Industries Company.
Crude oil needed by the refinery comes from Maroun Oilfield in Khuzestan Province via a 430-km pipeline.
