“We currently produce gasoline and liquefied gas in two quality grades (Euro-4 and Euro-5). But the production of premium diesel is planned to commence in three months,” Gholamreza Baqeri was also quoted as saying by ILNA.
Baqeri noted that 60% of the refinery’s gasoline production comply with Euro-5 and the rest is of Euro-4 quality, which is distributed in East Azarbaijan. He added that the refinery’s mazut output is due to decline under 2% from the current 20%, following the implementation of an optimization plan by a consortium of South Korean and Iranian companies in Tabriz.
Tabriz Oil Refining Company signed a €1.6 billion ($1.88 billion) deal on Saturday in Tehran with SK E&C Company of South Korea and Oil Design and Construction Company of Iran on financing and implementing the project. The South Korean-Iranian consortium will be in charge of design, engineering, procurement and installation of equipment, with the Export-Import Bank of Korea or Korea Eximbank to finance the venture, Financial Tribune reported.
As per the terms of the contract, at least 51% of equipment and services for refurbishing Tabriz Refinery should be provided by Iranian companies. Baqeri noted that upon implementing the plan, the refinery will be able to compete with global rivals in international markets.
“Once similar plans in other refineries are completed, the country’s need for Tabriz Refinery’s products will decline and the refinery will be able to focus on exports,” he said. The official said another option would be to provide the petrochemical complexes’ feedstock for producing higher value added products.
According to Baqeri, the refinery’s annual production is equivalent to 5.5 million tons of wide-ranging petroleum products such as liquefied gas, gasoline, kerosene, diesel, jet fuel and feedstock for other industrial units.