Shazand Refinery supplies 2/3 of Iran Euro-4 petrol

EghtesadOnline: An abrupt and unusual enhancement of air pollution level in the cities of Iran in recent years has prompted Iranian officials to find an appropriate solution for countering the consequences of pollution.

News ID: ۷۷۹۳۰۱

18 September 2017

Increasing Euro-4 gasoline production was one of approaches pursued by the Iranian Ministry of Petroleum to reduce air pollution. To that effect, following the implementation of Iran's landmark nuclear agreement with six world powers, the country has moved to produce Euro-4 gasoline mainly in big cities, IRNA reported.

With a significant increase in clean and standard gasoline in the refineries in recent years, shutdowns due to extreme air pollution levels decreased to a large extent. Currently around one-third of gasoline consumed in Iran complies with international Euro-4 standards. More than 90% of this gasoline is distributed in big cities. Of a total of 24 million liters of Euro-4 gasoline produced in the country, more than 16 million liters is supplied by Imam Khomeini refinery in Shazand in central Iran. Due to development and establishment of new sections, this refinery has turned into one of the most profitable refining facilities in Iran. The refinery became operational in 1993.

Ali Jamshidi, CEO of Imam Khomeini Oil Refining Company, said the refining capacity of this facility stood at
250,000 b/d of crude oil.

'Every day, we supply 16 million liters of Euro-4 gasoline for big cities like Tehran and Alborz,' he said. 'Meantime, we have projects on the agenda to upgrade the quality of refined products. Following consultations with several European companies it is now possible to upgrade the quality of gasoline and gasoil to Euro-5 standards only by replacing the catalyst.'

The refinery embarked on a project in 2006 to boost the production capacity of its products and upgrade their quality in a bid to maximize gasoline production, minimize fuel oil output and supply products in compliance with environmental obligations and international standards. That came during years of sanctions. A consortium of an Iranian and a Chinese company started the job. Although working under such conditions looked difficult, specialists at Imam Khomeini Refinery managed to install the heaviest integrated reactor weighing 1,300 tonnes and three new serial generators (STG700). Such measures boosted productivity in this company.

Jamshidi said the refinery has become one of the most modern facilities in Iran and is now among the best in the region.

Treatment Capacity Enhanced

The crude oil refining capacity of this facility increased from 170,000 to 250,000 b/d and gasoline production rose from 4.7 ml/d to 16 ml/d of Euro-4 grade; the sulfur content of gasoil fell from 10,000 ppm to below 50 ppm; the feedstock of the refinery switched from light crude oil to blended heavy crude oil; environmental pollution levels declined; liquefied petroleum gas production capacity jumped from 500 tonnes to 2,000 tonnes a day; and benzene used in gasoline fell below one percent in compliance with international standards.

Jamshidi broke down the refinery's production in the last calendar year as follows (The facility was fed 247,800 b/d of crude oil):

15.1 mb/d of Euro-4 gasoline, 300,000 l/d of premium gasoline, 10.5 ml/d of Euro-4 gasoil, 2,900 cubic meters per day of LPG, 200,000 l/d of light naphtha, 1.2 ml/d of kerosene, 1.2 ml/d of jet fuel, 5.8 ml/d of fuel oil, 700 cubic meters a day of propylene, 900,000 tonnes a day of vacuum bottom (for Pasargad Oil Company), 350 tonnes a day of sulfur.

16 ml/d of Euro-4 Gasoline

During the first four months of the current calendar year up to July 22, the facility's production was 15% beyond projections. For instance, in gasoline production, 421 million liters was initially expected to be supplied in the first month of the year, which reached 455 million liters.

In the second month of the year, due to overhaul at the facility, gasoline production was forecast to fall to 350 million liters. But the output was even 23% more than planned and reached 435 million liters.

During the third month of the first quarter, 424 million liters of gasoline was to be supplied, but 427 million liters were produced. And in the fourth month of the year, the output was 5% more than planned.

A strong point with the Imam Khomeini refinery is its Euro-4 gasoline production. Under the former administration of President Hassan Rouhani, Euro-4 gasoline production resulted in a fall in environmental pollutants in big cities like Tehran and Alborz, both densely populated.

Currently, this big refining facility is producing 15 million liters a day of Euro-4 gasoline. In case all refining units remain in service, the gasoline production rate would reach 16 million liters.

When overhaul is done and catalysts are replaced some sections are automatically offline and the Euro-4 gasoline output declines.

'As far as the quality of gasoline production at the refinery is concerned I have to note that it is based on Euro-4 standards. The quality of gasoline has no shortcomings in terms of octane, benzene and aromatics,' said Jamshidi.

Overhaul Time Shortened

Every refinery needs to plan overhaul of its processing sections in a bid to sustain production. Shazand refinery is no exception. This year's overhaul at this refinery includes replacing catalysts at the reduced crude desulfurization (RCD) section and overhaul of one of two lines of sulfur and hydrogen units.

Given the highly sensitive nature of this project and also in a bid to eliminate pollution from H2S gas emissions when the sulfur production section is offline and in order to preserve hydrogen production for its consumers to continue working, overhaul in these units are done one after another and within the framework of a specific interval. Initially 25 days were envisaged for overhaul, but the period was reduced to 18 days. The catalyst of the RCD unit absorbs the sulfur and residues of atmospheric distillation and vacuum tower and sends to the residual fluid catalytic cracking (RFCC) unit for gasoline, LPG, gasoil and propylene production. This catalyst has to be replaced every 11 to 16 months. In the calendar year to March 2015, replacement of this catalyst lasted 93 days.

Iranian and foreign companies helped replace this catalyst. It was the first unit built in Iran; therefore, no sufficient experience had been achieved in discharging this catalyst. Therefore, it was decided that Iranian and foreign companies be consulted and finally Rojan Sanat Alborz and New Zealand's CR were selected for this purpose.

The overhaul of this unit was initially planned to be done last calendar year, but tests conducted later showed that this catalyst could still operate ; therefore, replacement of catalysts was put off for six months. The replacement of catalysts was initially expected to last 90 days, but since CR is among qualified companies with sophisticated equipment the project was done in two stages with a one-month-and-a-half interval. It took 20 to 25 days to replace each line.

Refinery Quality Upgrade

Jamshidi said the refinery plans to upgrade the quality of its products, adding that several European companies had noted during talks that the quality of gasoil and gasoline could be upgraded to Euro-5 grade only by replacing catalysts.

'Studies are under way for that purpose and the quality of output could be easily upgraded to Euro-5,' he said.
The main challenge to Euro-5 production is high levels of olefin compounds in the RFCC unit. Planning is needed for reducing these compounds.

In addition to implementing projects to upgrade the quality of products at Imam Khomeini refinery, the company has carried out activities for safeguarding the environment. Some of these measures are the elimination of penetration of wastewater into soil, monitoring of water, preventing water pollution and gathering greenhouse gases.

The refinery also plans to improve the quality of fuel fed into furnaces and conduct online monitoring.