Iran inks €2.6b deal to revamp Abadan refinery

A consortium of Iranian and foreign companies has signed a €2.6-billion deal with Iran’s Oil Ministry to revamp Abadan refinery, located in the southwest of the country, sources quoted Iranian deputy oil minister Alireza Zeighami as saying.
The consortium is tasked with implementing the second phase of the refinery’s development plan, which is aimed to increase daily gasoline output by 6 million liters to 21 million liters, he noted.

All the old establishments in the refinery will be replaced with modern facilities to boost production capacity, Zeighami said.

Moreover, 15.5 million liters of diesel fuel, 7.1 million liters of furnace oil, 3.9 million liters of jet fuel, and 1.5 million liters of liquefied gas will be added to the refinery’s production capacity, he added.

In October 2012, ISNA quoted Zeighami as saying that Iran is currently producing 25 million liters of premium gasoline per day, meeting Euro-4 and Euro-5 standards.

The country’s gasoline output is projected to hit 70 million liters per day by the end of the next Iranian calendar year (March 2015), he added.

Iranian Oil Minister Rostam Qasemi said in September 2012 that Iran will boost its gasoline production capacity by 10 million liters in the near future.

According to official government data, Iranian gasoline imports have slumped by as much as 95 percent over the last four years as rising refinery capacity and lowering fuel subsidies help neutralize Western sanctions aimed at starving Tehran of fuel.