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80% of Parts, Equipment Used by Isfahan Refinery Indigenized

Domestic companies and manufacturers are supplying about 80% of the parts and equipment required by Isfahan Oil Refining Company in central Isfahan Province, commercial director of the company said.

“Many parts had been supplied by European countries prior to the reimposition of the US sanctions on Iran’s economy and oil industry in 2018. However, following the efforts of Iranian experts, engineers and industrialists, several parts and equipment used in the Isfahan refinery have been indigenized,” Majid Shahsavari was also quoted as saying by the Oil Ministry’s news agency Shana.

According to the official, while the quality and performance of the locally-made parts are not inferior to those of foreign counterparts, their final prices are much lower than the foreign ones.

“In the last Iranian year [March 2020-21], $20 million were spent on buying parts from domestic companies, which would have cost three to four times as much if purchased from foreign companies,” he added.

Established in 1979, the refinery produces 25% of the country’s petroleum products, including 16 million liters of Euro-4 and 4 million liters of Euro-5 diesel as well as 8 million liters of Euro-4 and 12 million liters of Euro-5 gasoline per day.

Isfahan’s refinery is the main supplier of feedstock to Sepahan Oil Company, Isfahan Petrochemical Plant, Arak Petrochemical Plant, Jey Oil Refining Company and Iran Chemical Industries Company.

 

 

Environmental Measures 

As per its environmental commitments, the company is making efforts to reduce the amount of sulfur in mazut and gradually reduce the production of this eco-unfriendly fuel by converting it into other value-added products.

Mazut is a highly polluting product. It is a heavy, low quality fuel oil used in power plants and factories. The main type of bunker oil for ships is heavy mazut, derived as a residue from crude oil distillation.

Another environmental measure underway in the company is the construction of a diesel treatment unit that was completed in May to help boost diesel production in compliance with Euro-5 emission standards.

The unit will help reduce sulfur content in diesel from 10,000 parts per million to less than 10 ppm.

With the launch of the new unit next year, the refining company will produce 21 million liters of Euro-5 diesel per day.

The refinery launched a sulfur granulation unit with a daily capacity of 300 tons last year. The move was also in line with policies to reduce environmental pollution and upgrade the quality of refined products.

The plans are aimed at minimizing the environmental impact of sulfur in air and curbing emissions.

Sulfur is used mainly to produce sulfuric acid, an important chemical widely used in fertilizer, rubber, steel manufacturing and pharmaceutical industries.