Farhad Ahmadi, CEO of National Iranian Oil Engineering and Construction Company (NIOEC), said the first part of this project had been handled through an agreement with a consortium made up of Oil Design and Construction Company (ODCC) and a foreign partner. “This phase includes 18 processing units, which due to the COVID-19 pandemic and the absence of a foreign partner, the design, construction and installation of the major part of the equipment of this project was carried out by Iranian engineers, specialists, manufacturers and contractors.”

“The design, construction and installation of the largest atmospheric distillation unit with a capacity of 210,000 b/d and vacuum distillation unit with a capacity of 100,000 b/d, which is unique in the Middle East region, as well as the construction and installation of the largest hydrocracker unit (hydrogen catalytic cracking) with the capacity of more than 42 kb/d, which is considered the largest hydrocracker unit in the Middle East, are among the features of the project,” he added.

Specifications

On the other hand, the integrated design, construction, transportation and installation of the largest hydrogen furnace in the Middle East region weighing 1,500 tonnes, the design, construction and installation of the country’s tallest refinery flares with a height of 120 and 125 meters, the design, construction and installation of the largest naphtha hydrotreating unit with a capacity of 65 kb/d and setting a record of 32% progress in the construction of refining megaprojects in the final year of the project and under the 13th administration are among the important features in the implementation of this plan.

Stabilizing the refining capacity of the Abadan refinery, enhancing the efficiency of the refinery through renovating facilities and phasing out obsolete facilities, improving the quality of oil products based on the Euro-5 standard and mitigating environmental pollutants, increasing the percentage of kerosene and premium gasoline production by improving production technology and reducing fuel oil production are among the objectives of the Abadan development project.

“Optimizing and producing more value-added products in Abadan Refinery, which is one of the objectives of this project, is very important because with the implementation of the second part, all the products of this refinery will be produced in compliance with the Euro-5 standard. Reducing the environmental pollutants of the products, increasing the production of kerosene and premium gasoline via improving the production technology, reducing the production of oil furnace and stabilizing the capacity of the refinery are also other achievements of the implementation of this project, which will be realized by phasing out the old units and building and launching the new distillation units of phase 1 and 2 with capacity 210 kb/d and 150 kb/d,” said Ahmadi.

Phase II

Referring to the inauguration of the first phase of the 2nd phase of the Abadan refinery development project, Ahmadi said: “soon, simultaneously with the opening of this section, the ground will be broken for the implementation of the second part of the project.”

According to him, “in the first part of this project, the capacity of the Abadan refinery will be stabilized at 210 kb/d, and with the implementation of the second part within three years, the quality of the oil products will also meet the Euro-5 standard, which we hope will be implemented in the shortest possible time.”

Referring to the achievement of 34 million persons-hour without disabling accidents in this project, he said: “For the first time in this project, rail and road transportation have been used to transport equipment to the country, which is unique in its kind.”

Production/Export Capacity

He also pointed to the upgrading the quality of oil products produced in this refinery and said: “With the implementation of this phase, in addition to enhancing the quality and quantity of products produced in the country, Iran’s national export capacity will also increase significantly.”

According to him, in the first part of the project, 60,000 barrels of naphtha will be produced daily, and in the second part, 16 million liters of Euro-5 quality gasoline will be produced daily.

Ahmadi said implementation of this huge national project during imposition of the most severe sanctions on the country was a step towards enhancing domestic capacity and the self-confidence of domestic experts.

While referring to the diversity of crude oil input in this project he said: “In this project, for the first time, ultra-heavy equipment has been placed by rail.”

Ahmadi also announced that 95% of the engineering of refining projects in the country is implemented locally and said: “In the commodity sector, more than 70% of the refining equipment has been manufactured locally.”

According to him, more than 102 domestic companies have contributed to this project.

“In the second part, the quality of products will be upgraded. In general, 1.5% of the new refining production in this project will be liquefied petroleum gas (LPG), 22% will be kerosene and jet fuel, 21% will be gasoline and 24% will be diesel. With the full implementation of the project, the share of fuel oil produced in the Abadan refinery will be significantly reduced,” he said.

Refining Capacity

Ahmadi listed the flexibility in the country’s fuel consumption management by launching the Abadan refinery development plan, among other achievements of this plan and stated: “With the implementation of the second phase of the Abadan refinery development project, the production capacity of this refinery will be stabilized, while the launch of the new unit enables the Directorate of Corporate Planning of  National Iranian Refining and Distribution Company (NIORDC) and the Petroleum Ministry to increase the capacity of this refinery to more than half a million barrels per day if needed to manage the country's fuel consumption.”

Emphasizing that with the full implementation of the second phase of the Abadan refinery development plan alongside the old units, in addition to the stunning increase in refining capacity, the country will have the possibility of exporting products and Iran will not need to import gasoline, he added: “The first phase of the second step of the Abadan refinery development plan has 6 units under license, including atmospheric and vacuum distillation units, liquefied gas and utility units.’

He further announced the possibility of exporting naphtha for the first time and added: “The naphtha produced in this phase could be exported in addition to being used as feedstock in petrochemical plants.”

€2.6bn Investment

Ahmadi said €2.6 billion had been invested in the second phase of the Abadan refinery development project. He added that €1 billion had already been invested while the remaining €1.6 billion would be allocated in the second phase.

He said that in the second phase, hydrotreating and gasoline production units including CCR, NHT, ISOM, GHT and KHT as well as utility units would be built.

Ahmadi said the 110-year-old refinery did not quit processing even when it was struck by Bathists’ air raids during the 1980-1988 imposed war, noting that the facility remained a strategic hub in the Middle East region. He said that the Abadan refinery accounted for 19% of Iran’s gasoline output.

Courtesy of Iran Petroleum