Iran Refineries
Iran has a significant oil refining industry, with a total refining capacity of around 2.3 million barrels per day (bpd) as of 2023. However, the country’s refining sector faces several challenges:
– The majority of Iran’s refineries were built before the 1979 Islamic Revolution, and many are outdated and inefficient. Only 3 of Iran’s 9 refineries were built after 1979.
– Iran’s refineries primarily produce low-value products like mazut (heavy fuel oil) and bitumen, with only 25% of gasoline and 54% of diesel meeting modern Euro 4 or Euro 5 standards.
– Around 30% of crude oil processed in Iran is converted into highly polluting mazut and bitumen, rather than higher-value fuels.
– Iran’s refineries produce fuel with very high sulfur content, exceeding international standards by 7 times. This contributes to severe air pollution.
– Due to sanctions and lack of investment, Iran has struggled to modernize and upgrade its refining infrastructure.
Ongoing Refinery Projects in Iran
Despite these challenges, Iran has several major refinery projects underway to try to improve its refining capabilities:
- Hermes Refinery
– Abadan Refinery Upgrading (Phases 2 and 4)
– Arak Needle Coke Project
– Bandar Abbas Heavy Residual Upgrading
– Farzanegan Gas Condensate Refinery
– Ilam Gas Refinery Expansion
– Isfahan Refinery Upgrading and Gasoline Plant
– Javid Energy Parto Refinery
– Lavan Petro Refinery
– Makran Petro Refinery
– Mehr Condensate Petro Refinery
– Morvarid Mokran Petro-Refinery
– Persian Gulf Bid Boland Gas Refinery
– Pishgaman Siraf Petro Refinery
– Shahid Soleimani Petro-Refinery
– South Adish Condensate Refinery
– Tabriz Refinery Upgrading
– Tehran Refinery Upgrading and Gasoline Plant
These projects aim to increase Iran’s refining capacity, improve product quality, and integrate refining with petrochemical production. However, progress has been hampered by US sanctions and lack of foreign investment.
Challenges and Outlook
Iran’s refining sector faces significant challenges, including aging infrastructure, environmental issues, and lack of investment. The country has struggled to modernize its refineries and meet domestic demand for high-quality fuels.
While Iran has ambitious plans to expand and upgrade its refining capabilities, progress has been slow due to sanctions and other economic factors. Overcoming these challenges will be crucial for Iran to improve the efficiency and environmental performance of its refining industry.
Overall, Iran’s refining sector remains a critical part of its energy industry, but significant work is needed to bring it up to modern standards and make it more profitable and sustainable.
Iran Refineries
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