Iran Gasoline Desirable for Neighbors
Iran's Petroleum Ministry in the administration of President Hassan Rouhani has invested largely in projects to enhance refined petroleum products output. Thanks to such investment, Iran has seen its oil refining capacity grow. The country became self-sufficient in gasoline production last December.
Iran's average gasoline consumption currently stands at 85 ml/d to 90 ml/d. Nasser Ashouri, secretary of the Union of Iranian Oil Refining Industrialists, said since last December Iran has stopped importing gasoline. He added that even Iran's neighbors had welcomed purchasing gasoline from Iran due to the high quality of the product.
The high consumption of gasoline and petroleum products in recent years had led Iran to heavily depend on gasoline imports. In the previous round of US sanctions, in addition to oil and gas condensate, gasoline imports by Iran was also subject to sanctions.
Iran's current gasoline production capacity stands at 110 ml/d, 90 ml/d of which has a sulfur content of less than 10 ppm.
As Iran ceased to import gasoline in the last calendar year, the Trump administration has not sanctioned this sector in its new round of sanctions.
Ali-Reza Sadeq-Abadi, CEO of National Iranian Oil Refining and Distribution Company (NIORDC), has given a positive assessment of Iran's strategic gasoline and gasoil stocks.
Ashouri told "Iran Petroleum": "Currently the private sector in the Iranian refining industry has made big achievements with regard to the quantitative and qualitative supply of primary and secondary refined petroleum products at refineries."
The Union was set up in 2013 by the Tehran, Tabriz, Isfahan, Bandar Abbas, Shiraz and Lavan private oil refineries. New members include Kermanshah oil refinery and Bandar Abbas Gas Condensate refinery.
Union members supply about 80% of domestically-produced oil products, including liquefied petroleum gas, gasoline, kerosene, gasoil, fuel oil, bitumen, sulfur, aviation fuel, jet fuel and other products.
Iran Gasoline Supply to Neighbors
Ashouri highlighted the Iranian refineries' positive performance, saying: "The refined petroleum products supplied on the market have seen a big jump in terms of quantity and quality."
He added: "By improving quality of gasoline produced at Iranian refineries it would be possible to export this product, and Iran's neighbors are currently welcoming gasoline purchase from Iran."
Touching on Iran's oil refining potential, Ashouri said: "Iran's refining industry has in recent years moved to improve the quality of its products and upgraded its oil refining capacity. All this had taken place when Iran was under sanctions and no foreign advisor had been hired."
He said that Iranian engineers and technicians were able to run the most sophisticated equipment and machinery for the refining industry, adding that Iran had gained a high status among regional countries. Ashouri referred to the commissioning of the Bandar Abbas condensate refinery and other refining complexes, saying: "By launching three phases of the Persian Gulf Star refinery and the increasing production at this refinery, our country's capacity exceeds our domestic needs. That is a strong point for us to export Iran's refined products."
The Bandar Abbas condensate refinery has raised its treatment capacity from 360,000 b/d to 400,000 b/d. NIORDC officials say the figure would reach 450,000 b/d in coming months. Sadeq-Abadi recently said it would come up to 480,000 b/d by next March.
The Persian Gulf star refinery supplies products equal to the output of an oil refinery processing 1.3 mb/d of crude oil. Therefore, Iran is supplying the highest levels of high-quality products among regional states.
Gasoline Exports
Ashouri said production of Euro-4 and Euro-5 fuel was on the rise, adding: "Currently, Iran can rival other countries in terms of gasoline production, for instance, it can be argued that we may no longer need to import premium gasoline."
Noting that up to 20% of Iran's average annual gasoline production may be exported, he said Iran has learnt in recent years how to circumvent sanctions and what tools it would wield to neutralize the sanctions.
Ashouri said US President Donald Trump is well aware that Iran could be no longer slapped with gasoline embargo.
Private Sector Keen to Raise Production of Refined Products
Ashouri said Iran's refineries need to regularly assess their output in order to find a room in target markets for their surplus output.
He added: "This approach tops the agenda of the private sector now. By modifying the production of every product, we can control the market."
Ashouri said US sanctions on Iran would not be forever, adding: "Given the capacity of domestic industry and private sector in Iran, there is capacity for exporting refined petroleum products. Once sanctions are removed, Iran would be able to increase exports rate."
He said: "Of course I have to reiterate that we will not sit idly for US sanctions decisions and we will go ahead with our own plans. US sanctions are pursuing a different approach and they have realized that they could not create any obstacle and problem for us in the refining industry."