Iran plans to privatize refineries

Iran is in discussions to privatize the country’s oil refineries so as to be able to fund new refinery projects that will reduce the country’s need to import petroleum products. Despite being one of the world’s largest producers of crude oil, Iran is a net importer of gasoline due to a shortage in refining capacity. The company last year reportedly commenced construction of seven new refineries and also plans to upgrade existing plants. When complete, the refineries are expected to increase Iran’s refining capacity by 1.6 million barrels per day (bpd) and add 110 million liters of gasoline to its national production. Khuzestan would produce 180,000 bpd from heavy crude and is expected to cost close to US$4 billion. The refinery, located in the Arvand Free Zone near Abadan City, will be established and held privately. Additionally, Khuzestan will produce 10 million liters of super gasoline to comply with Euro IV standards, as well as diesel oil, jet fuel, liquefied gas and sulfur. The Persian Gulf Star refinery, under construction in Assalouyeh, will refine 360,000 bpd of gas condensates and produce gasoline and jet fuel among other products. (April 22, 2009)