An Iranian oil official said China plans to allocate approximately $2.2bln to implement the development project of Abadan oil refinery in Southwestern Iran.
Abbas Kazzemi, who is also managing Director of National Iranian Oil Refining and Distribution Company (NIORDC), said that China would spend 85 percent of the 2.6-billion-dollar project costs.
“With the implementation of this project, the quality of products of Abadan refinery, which is the oldest refinery in the country, will be upgraded to Euro-5 grade,” he said.
Iran has expanded its refining capacity during the last couple of years, while its gasoline consumption has come down considerably following the implementation of the first phase of cutting energy subsidies.
The country plans to increase its gasoline and gasoil production capacity by 64 and 12 million liters per day by completion of 9 ongoing development plans at its oil refineries.
These 9 projects include gasoline making units at Abadan, Tabriz, Isfahan, Bandar Abbas, Tehran (Shahid Tondgouyan), Imam Khomeini (Shazand) plus development and upgrading plans at Persian Gulf Star and Lavan oil refineries.
Following the implementation of these projects, production of kerosene and jet fuel will boost each by 7.4 million liters and liquid petroleum gas by 7.4 million liters per day.