7 July 2007 - 11:30
  • News ID: 108915
NGOs to Build Three Refineries in Southern Iran: MP

TEHRAN – Head of Energy Committee of Majlis (Iran’s parliament) here Saturday announced that the non-governmental sector would invest in construction of three refineries in the southern province of Khuzestan.

Kamal Daneshyar added the refineries would be built in Abadan, Andimeshk, and between Omidieh and Mahshahr.

He pointed to the establishment of a big energy city between Omidieh and Mahshahr, adding the project would create a great number of job opportunities.

The lawmaker said eight thermal power plants would be set up in different parts of the province with the aim of generating five thousand megawatts of electricity.

The Energy Committee chief expressed hope some of the projects would become operational in the current Iranian calendar year (to end March 20, 2008) and the executive operations of some would start within the period.

Iran’s Economy Council has already earmarked two billion dollars for building of two new oil refineries and repairing a number of the old ones in the southern port of Bandar Abbas.

The fund would cover expenses required for the building of two oil refineries in Bandar Abbas, said Minister of Petroleum Seyed Kazem Vaziri-Hamaneh.

The developing of four other refineries in the cities of Isfahan, Arak, Shiraz, and Tabriz as well as the restoring of pipelines, oil storage tanks, and stations were also on the agenda, he added.

Vaziri-Hamaneh said the new refineries were transferable to the private sector.

He had earlier announced that the country’s refining capacity would soar to around three million barrels per day in the next six years.

The minister put the current refining capacity in Iran at nearly 1.6 million barrels per day.

He said the construction of new refineries in Iran was high on the agenda of the Petroleum Ministry.

Vaziri-Hamaneh said eight billion dollars had been invested in the developing of Arak and Isfahan refineries and the building of condensate and crude oil refineries in Bandar Abbas.

The minister said the cabinet had approved a plan to build refineries in Shiraz and on Qeshm Island, adding that the construction of a heavy crude oil refinery in Abadan and the development of Tabriz refinery were under study.

Iran is OPEC’s second largest crude producer and is seeking to boost oil refinery capacity to end its dependency on expensive imported fuels.

First private mini-refinery was launched in Aras Free Trade Zone in Jolfa, East Azarbaijan Province, last week.

Speaking at the inaugural ceremony, managing director of the refinery said that ‘Aras Shimi’ Refinery would produce over 200 tons of oil derivatives such as gasoline, kerosene, furnace oil, diesels, and light lubricants per day.

Mohammad Sabralilou added that the refinery currently had the capacity to refine 73,000 tons of oil products per annum.

He said that the capacity could increase to over 200,000 tons annually.

The refinery, covering an area of 3,000 sq.m, became operational after two years at a cost of close to 170 billion rials (18.3 million dollars).

Products of the refinery were planned to be exported to the Central Asian states, Pakistan, Turkey, and the United Arab Emirates and even African and European countries. It has generated 120 jobs.

News ID 108915

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