Refinery Set for Early Inauguration

Refinery Set for Early InaugurationRefinery Set for Early Inauguration

The long-awaited Persian Gulf Star Refinery, with an overall capacity of 360,000 barrels of gas condensates, will be inaugurated ahead of schedule, the refinery's manager said on Thursday.

"The refinery, due to become operational in January 2016, will go on stream on December 21 2015,"Ahmad Adib was quoted as saying by Shana.

According to Adib, the project's first phase has made 91% physical progress and the mega project's gasoline complex will go on stream in February 2016 after a series of delays and setbacks mainly due to lack of financing.

The loss in profit due to startup delay is estimated at $3 billion to $4 billion.

“The refinery’s annual revenues would amount to $10 billion had it gone into operation when oil prices were around $100 per barrel. But the refinery is now expected to engender $6 billion to $7 billion in revenues,” he said.

The manager added that the refinery is of great importance for the country as "Iran tries to cut reliance on gasoline imports".

Persian Gulf Star Refinery will supply a wide range of products, including quality gasoline, diesel and jet fuel.

Referring to changes in the formation of the national project's shareholders' equity, the manager said, "Tamin Petroleum and Petrochemical Investment Company, Iran Oil Pension Fund Investment Company and the National Iranian Oil Refining and Distribution Company hold 49%, 33% and 18% shares respectively.

"The early production plan is being implemented based on a license issued by Oil Minister Bijan Namdar Zanganeh," he said, adding that the completion of the first phase will lead to the production of naphtha, diesel, kerosene and fuel jet by December 21, 2015.

The refinery is expected to produce 360,000 barrels of gas condensates, 27 million liters of regular gasoline, 9 million liters of super gasoline, 14 million liters of diesel and 370,000 liters of jet fuel per day once fully operational.

Daily production of 3.8 million liters of liquefied gas, 130,000 tons of sulfur and 468 tons of hydrogen is also among the refinery’s objectives.

Adib said full cooperation is underway with the National Iranian oil Company to receive the much needed feedstock.

The refinery's construction cost $3 billion. NIORDC is at the helm of the refinery’s sales policies and the refinery's products are to be exported due to their high quality.

Iran is set to start the export of gasoline upon the completion of Persian Gulf Star Refinery in the port city of Bandar Abbas.