Persian Gulf Star, known as the world’s largest gas condensate refinery, will help complete the value-added chain in oil and gas industries, IRNA reported.
Speaking at the inauguration ceremony, Rouhani said: “With the third phase of PGSR coming on stream, domestic gasoline production in compliance with Euro-5 standards will rise to 45 million liters per day."
Daily production will constitute half the gasoline demand and turn Iran into a potential exporter of the fuel, Financial Tribune quoted him as saying.
PGSR also produces 12 million liters of diesel, 3 million liters of LPG and 2 million liters of jet fuel every day.
Feedstock for the huge facility is supplied by condensate produced at the giant South Pars Gas Field off the Persian Gulf.
Water for the refinery’s cooling towers comes from the Persian Gulf. Two pipelines stretching over 6km transfer 200,000 cubic meters of water an hour to the refinery and its electricity is supplied by seven steam turbines.
Domestic firms supplied over 70% of the equipment for building the facility and local technicians and engineers carried out the installation and implementation work.
Construction of the fourth phase of the mega project has started and is expected to be completed in two years.
Star Refinery aims to enable the country export fuel and other high-value products.
Each of the four phases is designed to produce 12 million liters per day of high-octane gasoline, 4.5 ml/d of Euro-4 diesel, 1ml/d of kerosene and 3 million liters of LPG a day.
The project is estimated to cost $3.4 billion.
Each phase uses about 120,000 barrels per day of gas condensate supplied from the South Pars Gas Field. When the fourth phase is up and running the refinery will consume 500,000 bpd of fuel.
Rise in Gasoline Production
The oil minister told the gathering that “Iran's gasoline production capacity in 2014 was 52 ml/d. This year it is 105 ml/d – double over a period of five years”.
Overall gasoline production will exceed 105 ml/d by the end of the current fiscal in March.
Referring to Iran's ability to export gasoline, Zanganeh said that Iran has intentionally limited exporting of gasoline, “because we want to boost our inventories. Gasoline import ended last September.”
Five years ago the country did not produce quality gasoline, he added. “Now daily production of Euro-4 and Euro-5 gasoline in Arak, Isfahan, Bandar Abbas and Tabriz refineries is 31 million liters. Adding PGSR production, Iran produces 76 million liters of standard gasoline every day.”
In 2014, diesel output was 6 million liters a day and has increased seven-fold over five years to 44 million liters.
Oil Refinery Upgraded
A major production enhancement project at Bandar Abbas Oil Refinery was also launched on Monday.
The project to boost production and improve quality at the refinery, the third largest of its kind in the country, will augment output.
It includes modernizing a gasoil hydrogen unit, a power generator, nitrogen unit, sour water unit, light naphtha unit, and 17 storage tanks.
The project will increase gasoline production by 3 million liters a day and reach 12 ml/d.
Moreover, 15 ml/d of Euro-4 diesel, with Euro-4 standard, has been added to the plant’s daily production.
The project has improved gasoline quality, reduced sulfur content from 400 ppm to less than 10 ppm and raised the octane number.
Quality of diesel produced at the refinery has also increased as sulfur content, which was 10,000 ppm, has decreased to less than 50 ppm in accordance with international standards.