30 August 2011
Seven refineries will be privatized in the current Iranian year (to end March 2012), announced deputy oil minister.
Alireza Zeighami, who is also head of National Iranian Oil Refining and Distribution Company, described privatization and implementation of Article 44 of the Constitution as the company's top priority.
Based on privatization drive, he said, the government should run close to 20 percent of the country's refining units including Imam Khomeini Refinery in Shazand, Arak, Markazi province and Abadan Refinery in Khuzestan province.
Also, the firms affiliated to National Iranian Oil Refining and Distribution Company such as Iran National Oil Products Distribution Company, National Iranian Oil Construction and Engineering Company, National Iranian Oil Refining and Distribution Company, National Iranian Oil Pipeline and Telecommunication Company and seven refining companies, will be privatized, he said.
Only Abadan and Arak refining companies are handled by government, he added.
Highlighting that foreign investment can contribute to the privatization program, he explained that Iran Foreign Investment Company would publish the details for foreign investors on how to purchase Iranian companies' shares.
He continued that the capacity of refineries would reach 2.2 million barrels from 1.6 million barrels by the end of Fifth Five-Year Economic Development (2010-2015).
Also, the pipelines for transferring refinery product will extend to 11,056 km from 8,860 km by the end of Fifth Five-Year Development Plan 2010-15). While, the length of pipelines for transferring crude oil will rise to 5,540 km from 3,831 km by 2015.
The capacity of fuel containers will reach 14.5 billion liters by 2015 and 17.5 billion rials by 2025 from the current level of 11.5 billion liters, he predicted.
Zeighami referred to the laying of 133 km of new pipelines for transferring fuel to refineries and renovating 170 km of existing pipelines as among the measures taken by National Iranian Oil Refining and Distribution Company in recent months.
CNG Stations
About 50 CNG stations will become operational in Varamin, Tehran province, next week, he disclosed. In addition, 50 stations will be inaugurated nationwide by next month, he pointed out.
With the inauguration of the aforesaid CNG stations, the country's total CNG stations will rise to 1,770, he added.
In light of expansion of CNG stations, close to 18 million liters of gasoline have been substituted by gas, he said.
The figure can reach 30 million liters, he predicted.
Moreover, a deal has been inked with Taskforce for Fuel Management and Transportation to construct 2,550 CNG station, he said.
Highlighting that all development plans for refineries will be completed by September 2012, he predicted that close to 40 million liters of gasoline will be added to the country's gasoline output per day.
New Projects
Pointing to projects to be inaugurated during Government Week (August 24-30), he said Phase I of gasoline production in Imam Khomeini Refinery Shazand is nearing completion. Once operational, it will produce 3-3.5 million liters of premium gasoline--raising the capacity of Imam Khomeini Refinery to 8 million liters, he pointed out.
He explained that the phase I of Imam Khomeini (Shazand) Refinery has cost 126 million euros without taking into account infrastructural funds.
He disclosed that RFCC (Residue Fluid Catalytic Cracking) unit has been launched in Imam Khomeini, Abadan and Isfahan refineries.
According to RFCC, gasoline is produced from furnace fuel oil and other heavy products, he elaborated.
He said domestic fuel storage capacity stands at 12.5 billion liters, adding the figure should reach 17 billion liters by the end of Fifth Plan.
The official pointed out that fuel storage containers with a capacity of one billion liters would be inaugurated in Eslamabad-e Gharb, Qasr-e Shirin, Chabahar, Ardebil, Shahr-e Kord, Zanjan and Semnan during Government Week.
Financial resources of National Iranian Oil Refining and Distribution Company are secured from the sale of participation bonds and providing banking facilities, he pointed out.
He said the company would receive close to $2 billion from Bank Mellat in the near future adding the company had obtained 3.5 trillion rials ($350 million) for Imam Refinery, 1.5 trillion rials ($150 million) for Bandar Abbas Refinery and 500 billion rials ($50 million) for Tondgooyan Refinery.
Close to 35 trillion rials ($3.5 billion) will be needed for establishing new refineries and optimizing them, he said, adding a portion of this sum will be met from domestic sources and the rest would be secured by Chinese finance.
Chinese Funds
Zeighami also said the country is in talks with a Chinese company to take part in the development of four Iranian refineries.
The officialsaid Chinese company will finance the development of Anahita, Abadan, Shiraz and Isfahan refineries once an agreement is reached, Mehr News Agency reported. He did not reveal the name of the Chinese firm.
Zeighami noted that the Oil Ministry's goal is to develop the refineries with investment to the tune of $11 billion.
The official added that the oil-rich country needs more than $21 billion in investment to set up six new refineries.
Earlier Sunday, NIORDC managing director also said that Iran plans to privatize seven oil refineries by the end of the current Iranian year (started March 21).
Zeighami said Isfahan, Bandar Abbas, Tabriz, Shiraz, Kermanshah, Lavan, and Tehran (Shahid Tondgouyan) oil refineries will be transferred to the private sector but the ownership of Abadan and Arak (Imam Khomeini) oil refineries will remain under state control. The deputy oil minister said that domestic and foreign investors can purchase the shares of the refineries through the Privatization Organization of Iran.
Seven refineries will be privatized in the current Iranian year (to end March 2012), announced deputy oil minister.
Alireza Zeighami, who is also head of National Iranian Oil Refining and Distribution Company, described privatization and implementation of Article 44 of the Constitution as the company's top priority.
Based on privatization drive, he said, the government should run close to 20 percent of the country's refining units including Imam Khomeini Refinery in Shazand, Arak, Markazi province and Abadan Refinery in Khuzestan province.
Also, the firms affiliated to National Iranian Oil Refining and Distribution Company such as Iran National Oil Products Distribution Company, National Iranian Oil Construction and Engineering Company, National Iranian Oil Refining and Distribution Company, National Iranian Oil Pipeline and Telecommunication Company and seven refining companies, will be privatized, he said.
Only Abadan and Arak refining companies are handled by government, he added.
Highlighting that foreign investment can contribute to the privatization program, he explained that Iran Foreign Investment Company would publish the details for foreign investors on how to purchase Iranian companies' shares.
He continued that the capacity of refineries would reach 2.2 million barrels from 1.6 million barrels by the end of Fifth Five-Year Economic Development (2010-2015).
Also, the pipelines for transferring refinery product will extend to 11,056 km from 8,860 km by the end of Fifth Five-Year Development Plan 2010-15). While, the length of pipelines for transferring crude oil will rise to 5,540 km from 3,831 km by 2015.
The capacity of fuel containers will reach 14.5 billion liters by 2015 and 17.5 billion rials by 2025 from the current level of 11.5 billion liters, he predicted.
Zeighami referred to the laying of 133 km of new pipelines for transferring fuel to refineries and renovating 170 km of existing pipelines as among the measures taken by National Iranian Oil Refining and Distribution Company in recent months.
CNG Stations
About 50 CNG stations will become operational in Varamin, Tehran province, next week, he disclosed. In addition, 50 stations will be inaugurated nationwide by next month, he pointed out.
With the inauguration of the aforesaid CNG stations, the country's total CNG stations will rise to 1,770, he added.
In light of expansion of CNG stations, close to 18 million liters of gasoline have been substituted by gas, he said.
The figure can reach 30 million liters, he predicted.
Moreover, a deal has been inked with Taskforce for Fuel Management and Transportation to construct 2,550 CNG station, he said.
Highlighting that all development plans for refineries will be completed by September 2012, he predicted that close to 40 million liters of gasoline will be added to the country's gasoline output per day.
New Projects
Pointing to projects to be inaugurated during Government Week (August 24-30), he said Phase I of gasoline production in Imam Khomeini Refinery Shazand is nearing completion. Once operational, it will produce 3-3.5 million liters of premium gasoline--raising the capacity of Imam Khomeini Refinery to 8 million liters, he pointed out.
He explained that the phase I of Imam Khomeini (Shazand) Refinery has cost 126 million euros without taking into account infrastructural funds.
He disclosed that RFCC (Residue Fluid Catalytic Cracking) unit has been launched in Imam Khomeini, Abadan and Isfahan refineries.
According to RFCC, gasoline is produced from furnace fuel oil and other heavy products, he elaborated.
He said domestic fuel storage capacity stands at 12.5 billion liters, adding the figure should reach 17 billion liters by the end of Fifth Plan.
The official pointed out that fuel storage containers with a capacity of one billion liters would be inaugurated in Eslamabad-e Gharb, Qasr-e Shirin, Chabahar, Ardebil, Shahr-e Kord, Zanjan and Semnan during Government Week.
Financial resources of National Iranian Oil Refining and Distribution Company are secured from the sale of participation bonds and providing banking facilities, he pointed out.
He said the company would receive close to $2 billion from Bank Mellat in the near future adding the company had obtained 3.5 trillion rials ($350 million) for Imam Refinery, 1.5 trillion rials ($150 million) for Bandar Abbas Refinery and 500 billion rials ($50 million) for Tondgooyan Refinery.
Close to 35 trillion rials ($3.5 billion) will be needed for establishing new refineries and optimizing them, he said, adding a portion of this sum will be met from domestic sources and the rest would be secured by Chinese finance.
Chinese Funds
Zeighami also said the country is in talks with a Chinese company to take part in the development of four Iranian refineries.
The officialsaid Chinese company will finance the development of Anahita, Abadan, Shiraz and Isfahan refineries once an agreement is reached, Mehr News Agency reported. He did not reveal the name of the Chinese firm.
Zeighami noted that the Oil Ministry's goal is to develop the refineries with investment to the tune of $11 billion.
The official added that the oil-rich country needs more than $21 billion in investment to set up six new refineries.
Earlier Sunday, NIORDC managing director also said that Iran plans to privatize seven oil refineries by the end of the current Iranian year (started March 21).
Zeighami said Isfahan, Bandar Abbas, Tabriz, Shiraz, Kermanshah, Lavan, and Tehran (Shahid Tondgouyan) oil refineries will be transferred to the private sector but the ownership of Abadan and Arak (Imam Khomeini) oil refineries will remain under state control. The deputy oil minister said that domestic and foreign investors can purchase the shares of the refineries through the Privatization Organization of Iran.
© Iran Daily 2011
