Iran is planning to build a number of condensate refineries in the South Pars region in the southern Iranian province of Bushehr.
According to a report by Iranian Ministry of Petroleum, the project will be completely implemented by the private sector and aims to prevent further sales of raw material in favor of selling the end products.
The report added that eight new refineries will be built in Siraf region of Bushehr province, between phases 13 and 19 of South Pars gas field over an area of about 300 hectares.
An official in charge of the infrastructure for the Siraf refineries project was quoted by Iranian media as saying on Sunday that when in full swing, the eight refineries planned to be built in the region will produce a daily total of 24,800 barrels of liquefied gas, 128,000 barrels of light naphtha, 148,000 barrels of heavy naphtha, 29,600 barrels of jet fuel, and 149,600 barrels of diesel fuel.
Alireza Sadeqabadi noted that by converting condensate to such products as naphtha, jet fuel and diesel fuel, Iran would be given more maneuvering room in the global market of oil products.
“The naphtha, which will be produced by the Siraf refineries, is one of the main feeds of the petrochemical industry and can be used by various petrochemical plants across the country,” he added.
According to the plan, a daily total of 480,000 barrels of condensate will be sent to the Siraf refineries to be converted to various products.
Sadeqabadi stated that since the project will be totally funded by the private sector, eight refineries will be built each with a capacity of 60,000 barrels of condensate, and each of the eight companies selected to carry out this national project will have to contribute USD 300 million as their share of the project’s expenses.
The official added that since the refineries will be build in the proximity of South Pars gas field, there would be no need to build pipelines to transfer condensate to the Siraf refineries.
“At present there is high demand for the liquefied gas in international market. Therefore, marketing the end product of the refineries will not be a problem,” he added.
South Pars gas field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar’s territorial waters.
The field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate.
By Press TV