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To: SE Mom

Here's a part of an analysis from the Energy Information Administration dated 2006.

"Refining and Transportation

As of January 2005, Iran had nine aging (most built before the 1979 Iranian revolution) but operational refineries with a combined capacity of 1.47 million bbl/d. Major refineries include: Abadan (400,000-bbl/d capacity); Isfahan (265,000 bbl/d); Bandar Abbas (232,000 bbl/d); Tehran (225,000 bbl/d); Arak (150,000 bbl/d); and Tabriz (112,000 bbl/d). In order to meet burgeoning domestic demand for middle and light distillates (gasoline demand is growing at around 9 percent per year), Iran plans to increase its refining capacity, possibly to 2.2 million bbl/d by 2008, although this will be extremely difficult to achieve given the security situation in the country.

One goal of this expansion is to allow Iran's refineries to process a heavier crude slate while decreasing the fuel oil cut. Currently, Iran's refineries produce around 30 percent heavy fuel oil and just 16 percent gasoline. In addition, diesel sulfur levels are slated for a major reduction (from 500 parts per million to 50 ppm by 2010), requiring significant additional hydrotreating capacity.

Iran has imported refined products since 1982, and these imports have been increasing rapidly. In 2005, Iran has been importing an estimated 170,000 bbl/d of gasoline at an estimated annual cost of around $3-$4 billion. According to Petroleum Argus, around 60 percent of this comes from European oil trader, Vitol, with another 15 percent coming from India’s 600,000-bbl/d Reliance refinery. For 2006, according to the FACTS consulting firm, Iran is expected to produce 266,000 bbl/d of gasoline, consume 462,000 bbl/d, and import 196,000 bbl/d.

In June 2004, Japan's JGC reached an agreement with Iran to expand Arak to 250,000 bbl/d by 2009. In addition, Abadan is being expanded by 50,000 bbl/d, with completion expected by spring 2006 (in addition, a new, 180,000-bbl/d-capacity refinery is being planned for Abadan). Bandar Abbas is being expanded in several phases, adding around 250,000 bbl/d of capacity by 2010 (and significantly more after that). Two planned grassroots refineries include a 225,000-bbl/d plant at Shah Bahar and a 120,000-bbl/d unit on Qeshm Island.

Under Iranian law, foreign companies are permitted to own no more than 49 percent of Iranian oil refining assets.

Iran exports crude oil via four main terminals -Kharg Island (by far the largest), Lavan Island, Sirri Island (reopened on April 13, 2003 for the first time since 1988, when it was damaged by an Iraqi air raid), and Ras Bahregan. Refined products are exported via the Abadan and Bandar Mahshahr terminals. Many Iranian oil export terminals were damaged during the Iran-Iraq War, but all have been rebuilt."

I think refineries are being currently built but are not online, the one I'm thinking of is in conjunction with Sinotec (Chinese).


234 posted on 07/25/2006 5:53:34 AM PDT by Dinah Lord (fighting the Islamic Jihad - one keystroke at a time...)
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To: Dinah Lord

" In order to meet burgeoning domestic demand for middle and light distillates (gasoline demand is growing at around 9 percent per year), Iran plans to increase its refining capacity, possibly to 2.2 million bbl/d by 2008, although this will be extremely difficult to achieve given the security situation in the country. .."



Thanks for the research:)

Interesting set of priorities.


256 posted on 07/25/2006 6:05:16 AM PDT by SE Mom (Proud mom of an Iraq war combat vet-pray for Israel))
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