Conditions Ripe for Operation of PGSR Distillation Unit

Payvandi told Shana that operation of the distillation unit just up to the liquid gas phase is not right from safety point of view and it is better to prepare the gasoline production unit of the refinery so that the distillation unit will be operational.

The official put total amount of progress in the project at 87 percent and said the first phase of the refinery has shown 95 percent progress, which is hoped that the phase will be operational by end of this year.

The official said the entire refinery will be launched by end of the next Iranian calendar year of 1396 on March 20, 2018.

Payvandi said fortunately, after the elimination of sanctions, the main equipment of the refinery is imported and the main compressor of the gasoline production unit in the phase one of the gas condensate Persian Gulf Star Refinery was imported and installed about two months ago.

Payvandi said with operation of the first phase of the refinery by end of this year and production of 12 million gasoline as a result, the country will attain self-sufficiency in gasoline production. 

With around US$3.2 billion invested in the Refinery project to date the PGSR will have a daily capacity of at least 36 million litres (226,000 barrels) of gasoline and 14 million litres (88,000 barrels) of diesel, plus 4 million litres (25,000 barrels) of LPG, 3 million litres (19,000 barrels) of jet fuel and 130 tonnes of sulphur, according to the latest figures from NIORDC.  

Work on the facility is being carried out on an engineering, construction and procurement (EPC) contract, awarded by a consortium of shareholders – Oil, Gas and Petrochemical Investment Co. (49%), Oil Industry Pension Fund (33.1%) and NIORDC (17.9%).

Once the first phase becomes fully operational – being fed by 360,000 bpd initially of gas condensate from the South Pars gas field – the remaining phases of the project will kick in over the course of the following four months.

The addition of the PGSR, with the corollary 388-km gas condensate transfer pipeline that has been extended from Assalouyeh to the refinery, will bring Iran’s total gasoline production capacity up to 96 million litres (603,000 barrels) per day.

This compares to Iran’s current rate of gasoline consumption of around 70.6 million lpd (444,000 bpd), which would allow Iran not only to become self-sufficient for gasoline but would allow it to export around 30 million lpd (189,000 bpd) for the first time in many years, according to Nasser Sajjadi, managing director of the National Iranian Oil Products Distribution Co. (NIOPDC).