Post-Revolution Oil Refining Developments
The present report reviews the measures taken by Iran’s refining industry since the 1979 Islamic Revolution. In broad terms, they include self-sufficiency in refinery construction like the building of the Bandar Abbas Gas Condensate Refinery, and mastering technical knowhow for some catalysts and compressors.
n the aftermath of the Islamic Revolution, a large number of projects became operational by the National Iranian Oil Refining and Distribution Company (NIORDC). Chief among them are the construction and startup of three phases of the Bandar Abbas Gas Condensate Refinery, development and optimization of the Imam Khomeini oil refinery in Shazand, optimization and upgrading petroleum products quality and gasoline production section at the Shahid Tondguyan refinery of Tehran, gasoline production at the Isfahan oil refinery, startup of the development and optimization project at the Lavan refinery, gasoline production and renovation project at the Abadan oil refinery, startup of gasoline production at the Tabriz oil refinery, startup of CCR plant at the Bandar Abbas oil refinery and the systemization of the Mahshahr export port.Euro-4-grade gasoline production and distribution has been growing at Iranian refineries over recent years. In the Iranian calendar year to March 2018, roughly 29 ml/d of Euro-4 gasoil was produced for motorists. Furthermore, Euro-4 gasoil production started at Iran’s oil refineries in the years that followed the revolution. In the calendar year to March 2018, Euro-4 gasoil production stood at 22 ml/d. The construction of eight 60,000-b/d condensate mini-refineries also got under way by eight Iranian companies for $3 billion in Assaluyeh without any government funds.Significant Jump in ExportsProduction of the five core petroleum products (gasoline, gasoil, kerosene, fuel oil and liquefied petroleum gas) averaged 100 ml/d in 1978, but after the startup of new refining facilities and the upgrade of older oil treatment facilities following the Islamic Revolution, the figure reached 252 ml/d in 2017. Iran did not export any refined petroleum products prior to the Islamic Revolution, but currently Iran is exporting fuel oil and gasoil in large quantities.Fuel Production UpIn 1978 Iran’s gasoline and gasoil production averaged 14.4 ml/d and 25 ml/d respectively, but the figures are now 67% up thanks to renovation of old facilities and construction of new refineries.A major achievement in the downstream oil sector after the Islamic Revolution is the construction of the Bandar Abbas Gas Condensate Refinery, commonly known as the Persian Gulf Star refinery. Gasoline production started at this refinery in March 2017. Phase 1 of the refinery was inaugurated in May 2017 and the second phase in July 2018. Phase 3 of the refinery has become operational in February2019. The facility has made Iran self-sufficient in the production of Euro-4 gasoline and higher grades gasoline. Gasoline Quality UpgradeThe implementation of gasoline production enhancement and quality upgrade projects at the Bandar Abbas oil refinery with a view to increasing gasoline production and upgrading the quality of gasoline and gasoil was an effective step for gasoline self-sufficiency in Iran. The project began in 2007 and was over in 2018, creating 2,500 job opportunities. The tangible results of the project include the gasoil hydro-treating unit (separating sulfur from gasoil) and improving the quality of gasoil at the Bandar Abbas oil refinery at the capacity of 50,000 b/d.The startup of light naphtha hydrotreating (LNHT) section helped pre-treat the light naphtha flowing into the section and remove pollutants particularly sulfur, nitrogen and oxygen at the rate of 133 cubic meters per hour. Meantime, the startup of the isomerization unit has helped the Bandar Abbas oil refinery enhance the octane number of light naphtha with a view to upgrading the quality of gasoline. The sour gas amine-treatment section has removed hydrogen sulfide and sulfur compounds like mercaptans from gas at the rate of 863 normal cubic meters per hour. Through launching the sulfur recovery unit, the acid gas produced at the sour gas treatment unit and the sour water treatment unit will be transformed into molten sulfur to be transferred to the sulfur recovery unit for sulfur production at the rate of 4,380 normal cubic meters per hour.Construction of 17 cylindrical and spherical storage facilities is another brilliant record in the history of the Islamic Revolution.Air Pollution Control and Environment ProtectionThe Lavan Oil Refining Company was established in 1976 under the name of Lavan Distillation Complex with a capacity of 20,000 b/d of crude oil. It was built jointly by National Iranian Oil Company (NIOC) and a Yugoslav company. After the victory of the Islamic Revolution, given the existing potential and strategic position of Iran, development and optimization projects were placed on the agenda. As the Iraqi war started a number of refineries including the Abadan