Energy
0

Abadan Refinery Awaiting Chinese Credit

Abadan Refinery Awaiting Chinese CreditAbadan Refinery Awaiting Chinese Credit

The development of Abadan Refinery is still awaiting Chinese finance, two years after the project was handed over to a consortium of foreign and domestic contractors, ISNA reported Sunday.

A large investment is required to develop the refinery, Abbas Kazemi, the managing director of the National Iranian Oil Refining and Distribution Company (NIORDC), said, while expressing hope that official procedures to open a Chinese line of credit will be carried out soon. The project is estimated to cost 2.6 million euros.

Development of Abadan Refinery, to be conducted in three phases, is aimed at stabilizing the refining capacity of the complex, reducing the number of environmental pollutants, increasing oil, gas, and gasoline production in conformity with Euro-5 standards, decreasing production of mazut, and decommissioning of the dilapidated infrastructure.

When the development project is finished, Iran will see its gasoline production rise by 6.2 ml/d, gasoil production by 15.5 ml/d, fuel oil production by 7.1 ml/d, kerosene by 3.9 ml/d, and liquefied gas by 1.5 ml/d, the report added.

The EPC (engineering, procurement, and construction) contract for the phase two of the development project is signed, but it’s not put into effect yet, the report by ISNA said without elaboration. The designing stage commenced about a year and a half ago, after the Early Work Agreement was signed as part of the EPC contract. Abadan Refinery, one of the biggest in the world with a production capacity of 400,000 oil barrels a day, is located in Abadan near the Persian Gulf coasts. It was founded in 1909 by the Anglo-Persian Oil Company (later British Petroleum).

It operates as a subsidiary of NIORDC, and produces and processes different oil byproducts including LPG, naphtha petrochemical feed, regular gasoline, kerosene, jet fuel, gas oil, light fuel oil, lube-cut oil, bitumen, and sulfur.

 

Financialtribune.com