“The unit, which is currently in the final stage, will reduce sulfur content in diesel to less than 50 parts per million, which complies with Euro-4 standards,” Hashem Namvar was also quoted as saying by Shana, the Oil Ministry’s official news agency, on Monday.
Namvar noted that the diesel hydrotreating unit accommodates two furnaces, the first of which has already come on stream and the second is being readied for launch based on strict safety and technical standards. The official added that other sections of the unit, including reactors and a rotary-screw gas compressor, will also become operational in the near future.
According to Shana, the plan’s gasoline, light naphtha treatment and isomerization units were launched in the last fiscal year (ended March 20, 2018), while the refinery’s sulfur granulation unit went on stream a month ago, Financial Tribune reported.
Reducing emissions of pollutants, improving economic performance, optimizing energy consumption, increasing gasoline production capacity, creating jobs and raising the knowhow of personnel are among the advantages of this plan.
Bandar Abbas Oil Refinery accounts for 18% of the country’s petroleum products, including liquefied gas, kerosene, jet fuel, diesel and mazut.
Gholamreza Baqeri, the managing director of Tabriz Oil Refinery in East Azarbaijan Province, also said that a similar diesel hydrotreating unit is being built in the refinery to upgrade diesel output to comply with Euro-5 standards.
Baqeri added that the unit will also produce group II base oils, which are defined as being more than 90% saturates, less than 0.03% sulfur and with a viscosity index of 80 to 120, to meet a substantial portion of Iran’s demand.
Underscoring that the unit’s daily production capacity stands at 30,000 barrels, he noted that the project will enhance the quality of Tabriz refinery’s products from the current Euro-2 to Euro-5 standards. The environmental project is being implemented by an unnamed domestic contractor.
Tabriz Oil Refining Company signed a €1.6 billion ($1.88 billion) deal last year in Tehran with SK E&C Company of South Korea and Oil Design and Construction Company of Iran on financing and implementing the project to upgrade the quality of its diesel output to comply with the Euro-4 and Euro-5 emission standards.
As per the terms of the contract, the South Korean-Iranian consortium is in charge of design, engineering, procurement and installation of equipment, with the Export-Import Bank of Korea or Korea Eximbank to finance the venture.