Iran will increase oil refining to reduce dependence on gasoline import


By 2020, Iran will increase the amount of refined oil from 1.85 million barrels per day to 3.2 million barrels per day.

Iran plans to increase the volume of refining oil and gas condensate by 70% over the next 4 years to improve the quality of fuel sold on the domestic market, and reduce dependence on imported gasoline.

As it was stated by the representative of the National Iranian Oil Refining & Distribution company Abbas Kazemi, 5 new refineries will be built in order to increase the amount of processed oil to 3.2 million barrels per day from the current 1.85 million. In addition, $14 billion is required for the modernization of existing refineries.

One of the new refineries of the company Persian Gulf Star, capable of processing up to 360,000 barrels per day, will begin its work next March. In addition, private companies work on the project of a refining complex in the southern port Asalouyeh, which will consist of 8 factories, capable of processing 60,000 barrels per day each. Also, 3 more plants  will be built, able to process 300,000, 150,000, and 120,000 barrels per day.

Besides, $14 billion will be spent on the modernization of existing plants in Isfahan, Tabriz, Tehran, Bandar Abbas, and Abadan. Modernization in Abadan will be performed at the country’s expense, while for all other plants Iran is looking for investors. Abbas Kazemi said that Tehran is negotiating with the contractors from South Korea and Japan.

“The only product they [Iran] are lacking is gasoline,” oil analyst Tushar Tarun Bansal told Bloomberg.

He believes that processing gas condensate into gasoline would allow Iran to cut imports of fuel no later than in the second quarter of 2017.