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Construction of new oil refineries in Iran slightly progresses

Iran Materials 23 November 2011 11:38 (UTC +04:00)

Azerbaijan, Baku, Nov. 22 / Trend,D.Khatinoglu/

Iran has issued permission to construct six new oil refineries with a combined refining capacity of 1.2 million barrels per day, however there is a slight progress because of funding problems, the U.S. Energy Information Administration said.

In 2010, Iran consumed around 400,000 bbl/d of gasoline, about 4 percent less than consumed in 2009. "Iran does not currently have sufficient refining capacity to meet its domestic gasoline and other light fuel needs. However, the government has approved a number of expansions of the existing, as well as construction of new oil refineries with the aim to make Iran self-sufficient (and an exporter of gasoline)", EIA reported.

Iranian gasoline imports were approximately 78,000 bbl/d in 2010, nearly 70 percent of total product imports. Current and proposed expansions of Iranian oil refineries likely will come online between 2012 and 2017. Iran is expected to remain a gasoline importer next year, however if proposed expansions occur as planned, it is possible the country will become a gasoline exporter in 2015.

Iran is the second-largest oil consuming country in the Middle East, second only to Saudi Arabia. Iran's oil consumption was approximately 1.8 million bbl/d in 2010, about 10 percent higher than the year before.

Iran has limited refinery capacity for the production of light fuels, and consequently imports a sizeable share of its gasoline supply. Iran's total refinery capacity in January 2011 was about 1.5 million bbl/d, with its nine refineries operated by the National Iranian Oil Refining and Distribution Company (NIORDC), a NIOC subsidiary.

Iran plans to increase refining capacity with the aim to become self-sufficient for gasoline. Plans for capacity increases through expansions at existing refineries as well as planned greenfield refinery construction have been announced. Iran has issued permits to construct six new refineries with a combined refining capacity of 1.2 million bbl/d, however there has been little progress because of financing difficulties.

Iran has nine refineries including Abadan, Arak, Bandar Abbas, Isfahan, Tabriz, Tehran, Lavan Island, Shiraz and Kermanshah.

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