“We hope the feedstock is provided on time so that it can restart production in February,” ISNA quoted Hamid Varesi as saying.
The refinery was launched in March 2016 but was shut down in October due to a fire that engulfed the plant. Fire broke out due to an explosion at one of the refinery's fuel storage tanks. Firefighters put out the blaze after five hours, according to Financial Tribune.
However, the repair process took rather a long time and when the plant was ready for production, it did not receive its needed feedstock.
There were no casualties but 100,000 liters of fuel was lost to the blaze. According to reports, parts of the refinery's processing facilities were also damaged.
When launched, the plant will produce 15,000 barrels of gas condensates a day, Varesi said, adding that after completion of a development program, the refinery’s output is expected to reach 50,000 barrels per day in summer. Other products will include LPG, light oil, kerosene, gasoline and diesel.
When the refinery was in operation a part of its output was exported,” he added, and hoped that exports would be also resume soon.
“According to estimates, exporting 15,000 barrels a day of condensate will generate $300 million a year and if production capacity reaches 50,000 bpd, the annual revenues will be around $1 billion,” Varesi said.
Oil and gas condensate exports have plunged under new US restrictions announced in May 2018.
One of the strategies that Iran adopted to keep its oil and condensate exports afloat, is that it is experimenting new ways to diversify the sale mechanisms, one of which is selling crude and light oil besides gas condensate on the domestic stock market.
Supply of oil and gas condensates on the Iran Energy Exchange (IRENEX) has been on the agenda to draw on the high capacities and capabilities of private enterprises.
In the last fiscal budget, the Oil Ministry was obliged to offer 2 million barrels of light crude, 2 million barrels of heavy crude oil plus two million barrels of natural gas condensates on IRENEX on a monthly basis.
South Pars Gas Complex is the major producer of gas condensates and accounts for 92% of gas condensate output.
Over 650,000 barrels of gas condensate is supplied to the Persian Gulf Star Refinery in Hormozgan Province and Nouri Petrochemical Complex in southern Bushehr Province as feedstock a day.
South Pars, the world's largest gas field and shared between Iran and Qatar, is developed in 24 phases of which 22 phases are operating and phase 14 is being completed. Phase 11 has not been developed yet.