EghtesadOnline: Bandar Abbas Gas Condensate Refinery is under construction by Persian Gulf Star Oil Refinery. The project is open to foreign investment.
Today, Persian Gulf Star Refinery is as famous as South Pars gas field as it is being spoken highly of by Iranian petroleum industry officials, IRNA reported.
Since taking office, Minister of Petroleum Bijan Zangeneh prioritized this refining project. The first section of the refinery became operational in the final months of the first administration of President Hassan Rouhani in office to convert gas condensate into gasoline.
The Persian Gulf Star Refinery is of significance due to the fact that it would end Iran's need to import gasoline and would even make Iran into an exporter of gasoline. The refinery did not come on-stream on time mainly because of sanctions and financial shortages. The undeniable fact is that the project still needs injection of capital to survive.
Morteza Emami, CEO of the refinery, said that one billion dollars was still needed for the full operation of the treatment facility.
National Development Fund of Iran (NDFI), more equity by shareholders and selling oil products are solutions for financing the project; however, managers of the refinery welcome financing and foreign investment, too.
Emami said the world is dominated by economic recession, but there is sufficient money for investment in Iran.
'Iran enjoys full security in the Middle East region, and all sanctions have been lifted on the country after the implementation of the JCPOA (Iran's nuclear deal),' he said.
'Furthermore, good facilities have been envisaged for investors. Therefore, there is a growing wave of interest for investment in projects in Iran, particularly in the petroleum industry,' said Emami. 'Over the past months, we have met and held talks with seven foreign delegations about investment in the Persian Gulf Star gas condensate refinery.'
Foreign investors and companies have demanded guarantees for working at the Persian Gulf Star refinery. Emami said the Iranian government had no plan to guarantee private sector projects and shareholders are required to provide guarantees.
'It is not possible for the moment, but we are seeking solutions including selling products of this refinery as guarantee and direct investment. For that purpose, we have had negotiations with investors from Europe and Asia and we hope that we would achieve good results in the near future,' he added.
The construction of Persian Gulf Star Refinery started 11 years ago with a rated production capacity of 36 million liters a day of Euro-4 and Euro-5 gasoline, 14 million liters a day of gasoil, as well as jet fuel, liquefied petroleum gas (LPG) and kerosene. The first phase of the refinery came online in April with a production capacity of 12 ml/d of Euro-4 gasoline, 4.5 ml/d of Euro-4 gasoil, 1.5 ml/d of Euro-4 kerosene and 1.3 ml/d of Euro-4 LPG.
The refinery can produce gasoline, gasoil, jet fuel, kerosene and LPG.
'Our main focus is to produce gasoline, given the priorities of the Ministry of Petroleum and the negative balance in the gasoline production and consumption,' said Emami.
'Meantime, since 60% of the feedstock received by this refinery is converted into gasoline, the gasoil, kerosene and LPG output is much lower. Of course, the country needs less of these products now,' he added.
Emami said that since startup, the facility has produced 722 ml of gasoline, 630 ml of gasoil, 1.514 billion liters of sweet naphtha and 1.722 billion liters of sour naphtha.
'At present, 6 ml/d of gasoline is being produced at this refinery, which is forecast to reach 12 ml/d in coming days,' he said, adding that supply of the five aforesaid products would be stabilized by next March.
Regarding the quality of Persian Gulf Star Refinery products, Emami said that due to the high quality of gas condensate received as feedstock, the products of this refinery are in compliance with Euro-4 and Euro-5 standards.
At present, on average 60,000 b/d of gas condensate is being supplied to this refinery from South Pars gas field.