{"id":13821,"date":"2025-04-08T09:07:10","date_gmt":"2025-04-08T09:07:10","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=13821"},"modified":"2025-04-08T09:07:10","modified_gmt":"2025-04-08T09:07:10","slug":"irans-daily-oil-refining-capacity-to-increase-by-180000-barrels","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/13821\/","title":{"rendered":"Iran\u2019s daily oil refining capacity to increase by 180,000 barrels"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0The executive deputy of the National Iranian Oil Refining and Distribution Company (NIORDC) announced that the South Adish and Mehr Persian Gulf refineries will become operational by the end of this year, boosting the country\u2019s daily refining capacity by 180,000 barrels.<\/p>\n

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Alireza Arman-Moqaddam, speaking on a television program Sunday, discussed Iran\u2019s refining and petroleum distribution industry in light of the current year\u2019s slogan, \u201cInvestment for Production.\u201d<\/p>\n

He noted that average gasoline consumption in 2025 was about 124 million liters per day, exceeding 130 million liters per day during the Nowruz holidays. On March 19, 2025, consumption hit a record over 160 million liters.<\/p>\n

Arman-Moqaddam emphasized that rising consumption must be met with increased production. Since the Islamic Revolution, Iran has built three refineries\u2014Arak, Bandar Abbas, and Persian Gulf Star\u2014which have significantly boosted output. Additionally, quality improvement projects have been implemented to produce Euro-standard gasoline and diesel in most refineries.<\/p>\n

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\u00a0<\/strong>Overconsumption: A major challenge for refining industry<\/strong>\u00a0 <\/strong><\/p>\n

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The executive deputy cited excessive fuel consumption as a key challenge, stating that public transportation infrastructure is insufficient to reduce reliance on private vehicles. Without intervention, he warned, consumption will continue rising unsustainably.<\/p>\n

If this trend continues, Iran could face severe challenges in the near future. Aside from the Makran Petrorefinery, most petrorefinery projects have seen minimal progress (2-3%). Arman-Moqaddam estimated that a 300,000-barrel petrorefinery requires $8\u201312 billion in investment, which is difficult under current economic conditions.<\/p>\n

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\u00a0South Adish Refinery to launch by Sept.<\/strong>\u00a0 <\/strong><\/p>\n

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The Makran Petrorefinery is only 10% complete, with construction on main units yet to begin. Meanwhile, the South Adish refinery, now 90% complete, is expected to become operational this year, adding 60,000 barrels per day to refining capacity. While it won\u2019t produce gasoline, it will yield 2.5\u20133 million liters of diesel daily.<\/p>\n

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Arman-Moqaddam said Iran\u2019s refining capacity will grow by over 180,000 barrels per day in 1404:<\/p>\n

– South Adish (60,000 bpd) \u2013 First half of 2025<\/p>\n

– Mehr Persian Gulf (120,000 bpd of gas condensates) \u2013 Expected by year-end<\/p>\n

Other ongoing projects include quality improvement plans, a CCR unit, and wastewater treatment at Tehran Refinery.<\/p>\n

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\u00a0Smart fuel card overhaul & bank card integration<\/strong>\u00a0 <\/strong><\/p>\n

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To manage fuel quotas more effectively, authorities plan to redesign the smart fuel card system and integrate bank cards for tracking. This aims to reduce smuggling by monitoring gasoline distribution more closely.<\/p>\n

Arman-Moqaddam also highlighted diversifying the fuel mix as a key strategy. While CNG usage previously exceeded 23 million cubic meters per day, it fell to 19 million. Efforts are underway to revive CNG\u2019s role through dual-fuel vehicle projects, easing pressure on gasoline demand.<\/p>\n

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\u00a0Financing challenges for refining projects<\/strong>\u00a0 <\/strong><\/p>\n

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Shahla Louni, NIORDC\u2019s investment manager, said mega-projects face funding hurdles. Under the 7th Development Plan, priority is given to projects with lower capital needs and significant progress, such as Pioneers of Siraf, Javid Energy, and Mehr Persian Gulf.<\/p>\n

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For financing, the plan relies on:<\/p>\n

\u00a030% \u00a0from capital markets<\/p>\n

\u00a05% \u00a0from shareholders<\/p>\n

Remainder from refinancing other projects<\/p>\n

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Louni cited the Abadan Refinery expansion\u2014funded through foreign financing\u2014as a success. For Phase 2, they plan to use revenue from Abadan\u2019s product sales due to sanctions constraints.<\/p>\n

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The Khuzestan refinery, requiring $3.2 billion, has provisions in the 1404 budget and 7th Development Plan, with ongoing talks with foreign firms.<\/p>\n<\/div>\n<\/div>\n

Updated on