EconomyIranMiddle East

Iran divesting world’s largest gas condensate refinery

The Iranian government will soon divest parts of its shares in the Persian Gulf Star Oil Company (PGSCO) which runs the world’s largest refinery working on natural gas condensate.

The official IRNA news agency said in a report that the divestment for PGSCO is possible now that authorities have agreed the company can pay its foreign exchange debts in local currency rial.

Head of Iran’s Fara Bourse (IFB), a subsidiary market of the Tehran Stock Exchange, said listing would take place shortly after initial paperwork is concluded.

“A part of shares of this company will be offered in the IFB market upon completion of required procedures for admission and listing,” said Amir Hamouni.

The state-run PGSCO owns the Persian Gulf Star Refinery which is responsible for over 40 percent of Iran’s total gasoline production of 105 million liters per day. It also produces high-quality diesel and jet fuel.

Since its launch about seven years ago, the refinery has turned Iran from a net importer of gasoline into a net exporter. It runs on natural gas condensate supplied from South Pars, the world’s largest gas field located in the Persian Gulf.

IRNA said feedstock capacity in the refinery has reached nearly half a million barrels per day (bpd) including that used in three physical phases with 120,000 bpd apiece and an extra 120,000 bpd of throughput which has become possible thanks to improvements carried out on current structures and installations.

A massive fourth phase is being developed for the Persian Gulf Star to further boost Iran’s fuel output and help find new exports markets for the country.

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