Two Iranian and Chinese companies are moving ahead with the development of Abadan Oil Refinery, Iran's oldest crude processing facility in oil-rich Khuzestan Province, said the managing director of the refinery.
“China's Sinopec Engineering Company and Oil Design and Construction Company from Iran are involved in developing the second phase of the refinery, which includes a new crude distillation plant to replace three old units that were built 70 years ago,” Iran Petronet news website quoted Ali Akbar Mirqaderi as saying.
The rehab project is aimed at enhancing the quality of products and improving their compliance with international standards.
Sinopec and ODCC are subcontractors of the National Iranian Oil Engineering and Construction Company. The new unit will have a production capacity of 210,000 barrels per day, which is 40,000 less than the combined capacity of the three old units, but will elevate the quality of gasoline and diesel to Euro-5 standard.
"Work on the second phase began last year and is progressing well," Mirqaderi noted. "The project is scheduled to be completed in three years." Sinopec was also in charge of the first phase of the rehab.
Regarding recent reports in the foreign media about withdrawal of Chinese companies from Iran’s oil and gas projects, he said that despite the re-imposition of US sanctions in November Sinopec is still continuing its work in Iran.
Sinopec signed a contract in 2017 worth $1 billion to expand Abadan Oil Refinery as part of a $2.7 billion agreement between the two countries struck earlier that year.
Launched in 1912, Abadan refinery is the first oil refinery build in Iran and was once the largest of its kind in the world.
The refinery was heavily damaged during the 1980-88 Iran-Iraq war. It is now operating with a daily capacity of 400,000 barrels.
Noting that Abadan refinery will be developed in four phases, Mirqaderi said the goal of the third phase was to build a fluid catalytic cracking unit and that has been accomplished. The refinery’s mazut output is due to be reduced to less than 10% from the present 37%.
Plans are underway to install a new boiler in the refinery's gas-fired power plant to reduce power consumption.
The project, worth $6 million, will help the complex halve electricity consumption by generating high pressure steam.
Boilers, which perform as a closed vessel to convert the water inside into steam, are one of the most fundamental systems of chemical processing plants.
Other projects worth $3 million have been implemented in the plant over the past two years, which have helped decrease natural gas consumption by 20%.
The ramshackle oil processing plant pumps 1500 cubic meters of water every day from Arvand Rood (river) for cooling purposes.
Development plans call for recycling water in the refinery to help curb water consumption in the dry southwestern region that is grappling with a major water crisis.
