Pouya Ma’arefi emphasized that the priority is to source both hardware and software equipment for the metering systems from domestic companies.

He, referring to the legal obligation of the Ministry of Oil under the Seventh Development Plan and annual budget laws to implement the real-time monitoring of the production-to-distribution chain, said: “In line with this legal mandate, the oil supply chain, from crude oil delivery to refineries to the distribution of petroleum products, will be equipped with precise measurement systems, and a monitoring and control center will be established within NIORDC.”

He added: “In this project, 86 geographic locations within the National Iranian Oil Products Distribution Company have been identified to be equipped with metering systems.”

Ma’arefi explained the process of monitoring through the installation of metering systems across 10 refinery companies: “This project will equip crude oil entering refineries, major product outputs, and the start and end points of transfer pipelines with precise metering systems. This monitoring process will continue through the downstream section, including major consumers like power plants that receive fuel via pipelines. Additionally, loading arms for tankers that transport fuel to distribution points will also be monitored and measured in real-time.”

He emphasized: “In essence, the entire supply and distribution chain, from oil refinery outputs to pipeline transfer lines and storage facilities, will be equipped with measurement systems, covering the entire chain from oil depots to major consumers such as power plants.”

Ma’arefi continued: “Once the project is fully implemented, metering systems will be installed on pipeline lines in power plants that receive diesel and fuel oil through pipelines. Other plants that receive fuel via tankers will be monitored and measured using geographical tracking systems like GPS. At the loading points, which are essentially the oil depot outputs, measurements will be made through the metering-equipped loading arms, and tanker volumes will be verified through tank dipsticks. This monitoring will continue through the smart network tracking system until the destination, where unloading data will be verified.”

First Phase completion in three years

Ma’arefi outlined the implementation of the real-time monitoring project for the petroleum products supply and distribution chain, saying: “The project is defined in three phases. Based on current planning and the Ministry of Petroleum’s legal obligations, we aim to complete the major parts of the pipeline equipment, terminals, and storage facilities in border regions by the end of 2025. Other priority sections of Phase 1 will be completed within 36 months, with Phases 2 and 3 scheduled to equip the entire operational network within 24 months.”

He added: “Once implemented, the monitoring systems at all affiliated companies within the NIORDC will be expanded. They will receive data on the status of products in pipelines and storage tanks and send it to the main monitoring center at the company headquarters. The received data will be evaluated in real-time using AI-driven analysis to identify any issues in the supply and distribution network, minimizing potential misuse of petroleum products.”

$220m investment

Ma’arefi emphasized that the priority in sourcing equipment for the metering systems would be from domestic companies. He added: “Fortunately, private companies have made significant progress in designing and producing metering systems, instrumentation, and related monitoring software. In line with supporting domestic production and meeting the needs of this project, we will maximize the use of domestic expertise and products.”

He reported that the initial investment for the real-time monitoring project of the petroleum products supply chain is estimated at $220 million, with the financial resources for the project being finalized based on the scope of work and will be sourced from internal funds, the Oil and Gas Investment Fund, and other financing methods.

Ma’arefi stated: “With accurate data and AI-driven analysis, potential fuel smuggling points will be quickly identified. Additionally, this information will help in the daily operations of the NIORDC to predict network balance during peak consumption periods. The analysis will ensure that fuel supply for vehicles across the country remains unaffected, even during high-demand times, and will help avoid any risk of reduced product supply in provincial areas.”