Publish Date: 26 January 2016 - 10:19

TEHRAN, Jan. 26 (MNA) – Deputy oil minister said negotiations have kicked off with South Korean and Japanese oil companies over Iran’s new refinery projects.

Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi pointed out the latest status of construction and implementation of Setare Khalij Fars Gas Condensates Refinery as the largest refinery project under construction in the country saying “currently, the prelaunch of utility units as well as some process units has started.”

“According to timetables, the distillation unit of Setare Khalij Fars Refinery will become operational by the end of the current Iranian calendar year (21 March 2016),” noted Kazemi estimating that the fuel gas production complex of the refinery will be launched in the coming year.

NIORDC managing director emphasized that the construction of pipelines to transfer the refinery’s productions to major cities has been put on the agenda as well; “at the present time, the pipeline project from Nain to Tehran is 80 per cent through while pipeline construction on other routes has also begun.”

The official reiterated that the implementation of Setare Khalij Fars Refinery would bring the possibility of supply and distribution of fuel gas with Euro 4 standard to all metropolises in the country; “the removal of sanctions would accelerate the construction of the huge refinery complex.”

“The priority for development of Iran’s oil refinery industry during the post sanction era remains as reduction of fuel oil production capacity in refineries,” highlighted the official maintaining “at the moment, the average fuel oil production rate of the country’s refineries is 26 per cent which is not economically justifiable.”

Deputy oil minister referred to the launch of talks between Iran and two Japanese and South Korean oil giants for the implementation of plans to reduce fuel oil production capacity in two of the country’s refineries; “so far, several talks have been held with these companies and the two sides have reached primary agreements.”

 

HA/3033143