Persian Gulf Star Refinery Exports Top $100 Million in 7 Months

EghtesadOnline: Export of oil derivatives from the Persian Gulf Star Refinery in the port city of Bandar Abbas topped $100 million in the past seven months, the managing director said.

News ID: ۷۴۸۷۹۳

23 October 2019

“An estimated 250,000 tons of petroleum products (naphtha, diesel and gasoline) went to international markets in these seven months,” ISNA quoted Mohammad Ali Dadvar as saying Tuesday.

The US sanctions notwithstanding, exporting gasoline is on the government agenda and whenever there is an inventory surplus, it can be sold via the Iran Energy Exchange (with less difficulty compared to crude), he noted.

According to the PGSR official higher production of value-added goods means the unfair penalties can be evaded with less problems, Financial Tribune reported.

He said PGSR exports generated $300 million in 2018.

Dadvar says in addition to curtailing domestic consumption, finding new customers can help the company boost international trade.

Selling gasoline on the Iran Energy Exchange started in September, he said, adding that it is not sold on the bourse on a regular basis.

Regarding PGSR's expansion plans, he said construction work is over on the first stage of the fourth phase of the plant in Hormozgan Province off the Persian Gulf.

"The project raised the refinery's condensate processing capacity by 40,000 barrels or 11%."

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An estimated 400,000 barrels per day of gas condensate is supplied to the complex from the giant South Pars Gas Field off the Persian Gulf.

Phase four increased PGSR's processing capacity by 120,000 bpd and the National Iranian Oil Refining and Distribution Company is now refining half a million barrels of condensates on a  daily basis.

The plant’s gasoline and diesel output is 45 million liters per day and 13 ml/d respectively.

PGSR is being developed in four phases. Each is designed to produce 12 million liters per day of high-octane gasoline and diesel as part of government policy to wean away from costly imports.

The first three phases are up and running.

Referring to gasoline production, the official said NIORDC is producing close to 110 ml/d of gasoline, of which 90 million complies with Euro-5 emission standards.

He put daily gasoline consumption at 95 million liters.

Energy experts, including Alireza Sadeqabadi, the chief of NIORDC say gasoline exports cannot continue unless home consumption is curbed.

Urging policymakers to be more sensitive to the soaring fuel consumption, he said replacing gasoline with CNG in cars, manufacturing fuel-efficient vehicles, improving and expanding public transport and increasing gasoline prices are among the measures that can help check the prohibitively high level of gasoline consumption.