Tabriz Oil Refinery in East Azarbaijan Province will begin to produce Euro-4 quality gasoline by the end of the current fiscal that started on March 21, managing director of the refinery said.
"The venture to upgrade the quality of gasoline output to comply with the Euro-4 emission standards has registered a work-in-progress rate of 60% and plans are in place to complete it by the yearend," Gholamreza Baqeri was also quoted as saying by ISNA.
According to the official, the refining complex will start to produce Euro-4 diesel by July.
"Except for mazut, the refinery's other products are being standardized through the implementation of optimization plans," Baqeri said, adding that a consortium of E&C Company of South Korea and Oil Design and Construction Company of Iran have signed a deal on financing and implementing the optimization project.
The South Korea-Iran consortium are in charge of design, engineering, procurement and installation of equipment, with the Export-Import Bank of Korea or Korea Eximbank to finance the venture.
As per the terms of the contract, at least 51% of equipment and services for refurbishing the Tabriz refinery should be provided by Iranian companies.
Baqeri noted that upon implementing the plan, the refinery will be able to compete with global rivals in international markets.
The official noted that due to the complex's geographical location, it is impossible to deliver more crude to the refining units. As a result, most projects are aimed at boosting the quality of products and meeting zero-emission environmental standards.
"Talks are underway with consulting Italian and Korean firms to adopt the best method to raise the standard features of the commodities," he said, adding that as soon as negotiations come to fruition, a preliminary tender to purchase much-needed licenses will be held.
According to Baqeri, the venture requires €1.5 billion in investment that should be attracted from domestic and international sources.
"Iranian companies will hold a 51% stake in the project," he said, stressing that some of the equipment will be imported.
According to Baqeri, the refinery’s annual production is equivalent to 5.5 million tons of a wide range of products such as liquefied gas, gasoline, kerosene, diesel, jet fuel and feedstock for other industrial units.
The National Iranian Oil Refining and Distribution Company is making concerted efforts to improve the quality of oil byproducts by upgrading installations in refineries. China's Sinopec Engineering Company signed a deal worth $1 billion to develop the first phase of Abadan Oil Refinery, Iran's oldest crude processing facility in the southern oil-rich Khuzestan Province.
According to Iranian officials, the venture was financed by China Export and Credit Insurance Corporation, or Sinosure. The funding is reportedly a part of a deal worth $3 billion to overhaul and expand the facility in four phases.
