Completion of 1st Phase of PGSR by November

The Persian Gulf Star Refinery in Hormozgan Province has no problem selling its quality products to domestic and international markets, chief executive officer of the Persian Gulf Star Oil Company said.

"Presently, the total gasoline output, standing at 6 million liters per day, is sold to the government and there is a growing demand for its other products like diesel and liquefied petroleum gas in the neighboring states," Morteza Emami was also quoted as saying by IRNA on Saturday.

"Selling PGSR output to the government to meet domestic needs is and will remain a top priority."

Emami stressed that the facility's wide-ranging products, namely Euro-4 quality gasoline, diesel, jet fuel, kerosene, sweet and sour naphtha and liquefied petroleum gas, can be sold based on buyback contracts, or through a pipeline from southern terminals in what would cost $200 million.

PGSR is owned by Oil, Gas and Petrochemical Investment Company (49%), Oil Industry Pension Fund Investment Company (33.1%) and National Iranian Oil Refining and Distribution Company (17.9%).  

Pointing to strategies to run PGSR, Emami said, "The complex will go on stream gradually, as the allocated budget was not adequate to complete the three phases simultaneously. Therefore, finishing the first phase by the end of November is high on the agenda."

The official announced that two other phases of the refinery are planned to become operational later this year.

He said the refinery had been intended to be up and running with $1.4 billion, although $4.2 billion have been spent and more investment is required.

"Not all shareholders have met their financial commitments," he added.

Referring to the long delay in the first phase, Emami said technical defects in the process of developing refineries is natural and PGSR is not an exception.

"As long as atmospheric distillation and isomerization units do not come on stream, other phases cannot be completed," he said.

"PGSR's total gasoline output has exceeded 320 million liters since its official inauguration in May. The refinery's daily Euro-4 gasoline output stands at 6 million liters per day that increases to 10 ml/d after being mixed with light naphtha."

According to PGSR's CEO, who recently took the reins of the company, around 280 million liters of gasoline output have been distributed in mega cities.

Emami noted that the complex is provided with 77,000 barrels per day of gas condensates, yet plans are in place to increase the feedstock to 120,000 bpd, which would lift the PGSR nominal gasoline capacity to 12 ml/d.

South Pars phases produce close to 900,000 barrels of gas condensates per day, "thus there are no concerns over the steady supply of the much-needed feedstock", he said.

PGSR is designed to produce 12 million liters per day of Euro-4 gasoline, 4.5 ml/d of Euro-4 diesel, 1 ml/d of kerosene and 300,000 liters per day of liquefied petroleum gas in the first development phase.