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Private Firms to Build Small Gas Refineries

Private Firms to Build Small Gas RefineriesPrivate Firms to Build Small Gas Refineries

Private sector investors will build several small gas refineries in Iran in the near future, the chairman of the board of the Society of Iranian Petroleum Industry Equipment Manufacturers (SIPIEM) said, ILNA reported.

"Construction will initially commence in provinces with easier access to feedstock and will expand to other provinces," Reza Padidar said

Production capacity of the new refineries will vary from 4,000 to 12,000 barrels of crude oil per day. Construction of gas condensate refineries remains a priority, and will be followed by crude refineries.

Iranian firms will be able to produce 10 major oil industry needs and equipment in 3 years, according to Padidar.

"Equipment that we now aim to manufacture inside the country was in the past imported from Europe before the US-led sanctions. After that it came from China…but the Chinese products have been of low quality," he noted.

The US imposed tough sanctions on Iran to curb the country's nuclear program which it claims is geared to military use. Iran insists that its program is peaceful. Iran and P5+1 have been holding marathon talks over the past year to thrash out a mutually  acceptable "comprehensive deal."

Despite the oil industry's limited budget for import, the 650 members of SIPIEM "will have the capacity to completely manufacture major oil equipment in Iran," the official said.

He, however, cautioned that the domestic manufacturers would need "substantial funds and bulk orders" to succeed in their work and move forward.

 

Financialtribune.com