Main problem of Iranian refineries – lack of technology

Business Materials 28 November 2019 14:34 (UTC +04:00)
Main problem of Iranian refineries – lack of technology

BAKU, Azerbaijan, Nov. 28

By Elnur Baghishov - Trend:

The main problem of Iran’s oil, gas and petrochemical refineries is lack of technology, Iranian energy expert Mehrdad Emadi told Trend.

Emadi said that Iranian refineries have been facing serious problems for the past four months, adding that the reason is non-implementation of a contract by Germany's Linde company to bring the latest technology to Iran.

“With implementation of that agreement, the operation and production of Iranian refineries would have increased,” the expert noted.

Emadi added that the financial sources of the agreement signed with Iran's Kian Petrochemical Company, have been provided, and technologies for the production of aromatics, olefins and propylene, polyethylene products would be provided, too.

Emadi noted that ethane and gas condensate are substances that the petrochemical industry needs.

On Nov. 1, Iran’s South Pars Gas Complex produced 700,000 barrels of gas condensate and 10 million tons of ethane in one day, Emadi said.

“If phases 12, 13 and 14 of the South Pars gas field are put into operation, and if the Parsian Gas Refinery is considered, the production potential will increase,” the expert noted.

Iran’s gas and petrochemical sectors remained aloof from implementing major projects because of the sanctions, Emadi added.

“Besides, US sanctions have hit Iran’s liquefied gas exports,” the expert said.

The Iranian expert said that the sanctions have created a great opportunity for Russia and the country could transfer technology related to refineries to Iran.

“However, the Russian side didn’t show much interest in this issue,” Emadi noted.

“An unofficial agreement between Russia and Saudi Arabia put Iran’s petrochemical sector in an unflattering position,” the expert said adding that ted that this will have severe consequences for the Iranian economy over the next 3-4 years.

Presently, 630 million cubic meters of gas may be extracted from Iran's South Pars gas field daily. After new platforms are commissioned at five phases (13, 14, 22, 23 and 24), gas production volume will increase up to 680 million cubic meters daily.

The South Pars Gas Field is a joint gas field between Iran and Qatar. The proven reserves have reached 51 trillion cubic meters of gas and it is possible to extract 36 trillion cubic meters of gas.