22 June 2011

Iran will celebrate self-sufficiency in premium gasoline production in early July, managing director of the National Iranian Oil Refining and Distribution Company (NIORDC) said.

"By launching gasoline production unit of Shazand Refinery, in the central province of Markazi, in early July," the country will achieve self-sufficiency in premium gasoline production, Alireza Zeighami told Mehr News Agency.

With the project becoming operational, daily gasoline production in the refinery will reach seven million liters, he said, adding the current capacity of the refinery is 4.5 million liters daily.
The project is being implemented at a cost of some $3.5 billion, Zeighami said.

Hormozgan, New Energy Hub

Given the start of gasoline exports, Hormozgan province on the Persian Gulf will be transformed into a new energy hub, managing director of National Iranian Oil Products Distribution Company (NIOPDC).

Referring to the unique location of Hormozgan as an oil export hub, Jalil Salari said speedy development of different infrastructures such as warehouses and the construction and equipping of wharfs in the province are on the NIOPDC's agenda, Shana reported.

Elsewhere in his remarks, Salari said that on average, 234 million liters of oil products including gasoline, kerosene, fuel oil and gas oil are distributed daily across the country.

On gasoline reserves, he said Iran's strategic fuel reserves increased by one billion liters following the implementation of Subsidy Reform Plan.

The amount of oil products currently stands at 13 billion liters, he said, adding this was achieved by developing infrastructure for fuel storage and managing consumption.

Prior to the implementation of the Subsidy Plan, the amount stood at 11.5 billion liters, according to the official.

However, before the implementation of gasoline rationing and the subsidy reform plan, Iran had to import 27 million liters of fuel. Now, Iran has turned into an exporter of gasoline, Salari added.

Iran started exporting gasoline last year.

Salari announced that Iran has earned $1.5 billion from fuel export so far.

Gasoline Imports Denied

Meanwhile, Mohsen Qamsari, executive director for international affairs at National Iranian Oil Company (NIOC) denied reports that Iran is importing 200,000 tons of gasoline per month.

"With regard to production of gasoline by domestic oil refineries, gasoline import is irrelevant," Qamsari told Shana.

The official further said since the Islamic Republic offers surplus gasoline production on the bourse, talking of gasoline imports is not relevant.

Earlier Zeighami had said that Iran was ready to increase oil products exports to neighboring countries.

Zeighami also reported talks on gasoline and diesel exports to Afghanistan amid plans to export 1.5 million liters of gasoline to Armenia after laying an eight-inch pipeline.

Based on talks with Armenia, Iran would be able to export 1.5 million liters of oil products including diesel and gasoline to the country daily, he noted.

Zeighami added the capacity could be increased up to three or four million liters following the construction of an eight-inch pipeline.

© Iran Daily 2011