Iran To Halt Gasoline Importation In 2017

Ali Kardor, the managing director of the National Iranian Oil Company (NIOC), told domestic media that there would be no provision in next year's budget bill – currently being drafted by the government – for the import of gasoline.

Iran is actively involved in construction of new crude oil refineries, as well as upgrading existing ones. Nine refineries are currently operating within the country, and by March 20 2017 (the end of the current year according to the Iranian calendar), two new factories are planned to begin operations.

Iran had to import around 20 million liters per day of gasoline to satisfy a runaway domestic consumption of some 80 million liters per day. However, consumption drastically dropped after the country abolished subsidized fuel allowances for motorists in 2010 – a move that led to an increase in prices of fuel, thus discouraging rampant consumption.

Tehran intends to complete the construction of the Persian Gulf Star Refinery next year, ending the need for foreign gasoline imports, the Shana news agency reports.

When fully operational, the refinery in Bandar Abbas will be able to produce 36 million liters of petrol per day. Its daily output will also include four million liters of liquefied petroleum gas (LPG), three million liters of jet fuel and 130 tons of sulfur.

The Gulf Star refinery is a joint venture, with National Iranian Oil Refining and Distribution Company (NIORDC) holding 18 percent, Oil, Gas & Petrochemical Investment Co. owning 49 percent and the Oil Industry Pension Fund holding the remaining 33 percent.

When the first phase of the refinery is operational, the plant will produce 12 million liters per day of Euro-4 standard gasoline. Production was previously impossible due to Iran's lack of technology and the inability to buy it abroad because of sanctions.

The second phase will increase the capacity to 24 million liters per day, the third – to 36 million liters per day. Iran’s daily gasoline consumption is about 70 million liters.

In addition, the plant will process about 360,000 barrels per day of gas condensate supplied from the South Pars field.