Call for Relocation of Hormoz Refinery

Call for Relocation of Hormoz Refinery Call for Relocation of Hormoz Refinery

Hormoz Crude Oil Refinery which was due to be constructed in Bandar Abbas is now expected to be relocated to Jask, an Iranian port city on the Gulf of Oman.

The National Iranian Oil Refining & Distribution Company argues the city has a huge refining potential and is a suitable alternative, given the infrastructure already built there and a projected discount the refinery could receive in feedstock prices.

"The relocation will be economical," NIORDC comparative planning manager, Shahaboddin Motaji, said, as reported by Shana news agency on Wednesday.

Construction of the Hormoz refinery, which has a nominal capacity to process 300,000 bpd of crude, was ratified by the NIORDC in 2006.  The project was estimated to cost about $7.5 billion and generate a net profit of $12 per barrel of feedstock. It was to be completed in four years but was delayed due to financial difficulties. In 2012 authorities eventually decided to divide the project into separate phases.

A $183 million investment was required for completion of the first phase. The National Development Fund of Iran (NDFI) was to allocate 80 percent of the fund and the rest was to be raised through private sources.