Following efforts to produce quality gasoline in compliance with Euro standards, the National Iranian Oil Refining and Distribution Company has started a new refining unit—naphtha hydrotreater—in Bandar Abbas Refinery in southern Hormozgan Province
Alireza Sadeqabadi, chief executive officer of NIORDC, said the unit has helped the company process more quality fuel by removing sulphur and nitrogen compounds, ILNA reported on Monday.
"A new batch of isomerization catalyst will be delivered to the plant soon," Sadeqabadi said, adding that after delivery the refinery's daily Euro-4 gasoline and diesel output will reach 12 million liters and 16 million liters per day.
Referring to the new unit, he said it will help his company decrease the sulfur content in gasoline from 350 parts per million to 50 ppm.
Euro-4 compliant fuel has sulfur content of 50 parts per million, compared to 350 ppm for Euro-II fuels.
The head of NIORDC noted that prior to the distribution of Euro-4 gasoline, the fuel sold at pumps had as much as 350 ppm of sulfur, which was over and above global limits.
The government is pursuing a two-pronged policy in dealing with mazut: minimizing output and converting the fuel into products with higher value-added such as gasoline and diesel.
Asked about the Abadan refinery, he said that phase 2 development of the plant will cut production capacity of mazut that has substantially reduced profit margin.
Oil officials including Sadeqabadi believe that due to the high production of low value-addedmazut in refineries, most refining units will go out of business unless they are supported financially by the government.
Notwithstanding the large refining capacity, the losses of refineries far outweighs their profit as they lack modern technology to convert eco-unfriendly mazut into high value-added gasoline.
The official said two new refining units namely the continuous catalytic reformer and naphtha hydrotreater are being installed in Tehran Refinery to help produce high octane fuel and curb air pollution.
Sadeqabadi noted that local gasoline output has risen by 32 million liters per day over the last three months of the current fiscal (started March 21), registering a 34% growth compared to last year.
Daily gasoline consumption is close to 105 million liters per day.
