12 January 2025 - 20:04
  • News ID: 652651
NIORDC head stresses need to diversify fuel portfolio

SHANA (Tehran) –The CEO of the National Iranian Oil Refining and Distribution Company (NIORDC) emphasized the necessity of diversifying the country’s fuel portfolio, stating that increasing production alone will not resolve the imbalance in liquid fuel supply.

Mohammad-Sadeq Azimifar, speaking at a meeting of the Oil Ministry’s deputies on Saturday attended by First Vice President Mohammadreza Aref, noted that liquid fuel reserves were at suboptimal levels at the start of the 14th administration.

As a result, short-term measures to boost production and increase reserves were prioritized. "Thanks to effective collaboration between the National Iranian Oil Company and NIORDC, this goal was achieved," he said.

Azimifar highlighted that under the 14th administration, several refining projects—such as the isomerization unit at the Shiraz refinery, the hydrocracker unit at the Abadan refinery, and process improvements at other refineries—have added 10 million liters to gasoline production and 11 million liters to gasoil production.

11% increase in Euro 4 and 5 gasoline, diesel production

The deputy oil minister stressed that this production increase was accompanied by improved quality.

"Unlike past efforts, where quantity increases came at the expense of quality, this administration has managed to enhance the quality of gasoline and gasoil while boosting production," he said.

Compared to the first five months of the year, production of Euro 4 and 5 gasoline and diesel has risen by 11%.

Azimifar noted that power plant liquid fuel reserves were low at the start of the administration, necessitating a focus on delivering more fuel to power plants.

"Thanks to these efforts, liquid fuel deliveries to power plants over the past four months have increased by 50% compared to last year," he said.

He attributed these achievements to increased refinery production, the commissioning of new pipelines, fleet expansion, and the support of the oil minister.

"Our focus in production and transmission infrastructure is to meet the targets of the Seventh Development Plan by the end of the administration, reaching a daily production capacity of 130 million liters of gasoline and the same amount of diesel," he added.

1,000 kilometers of new oil and product pipelines

Azimifar stated that 1,000 kilometers of new crude oil and petroleum product pipelines will be added by the end of the year (March 20).

Key projects include the 460-kilometer Bandar Abbas-Rafsanjan product pipeline, the Sabzevar-Rey pipeline, the Tabriz-Khoy-Urmia product pipeline, and the feedstock pipeline for the Bandar Abbas refinery.

Reducing CNG consumption

Azimifar emphasized that increasing production alone cannot resolve liquid fuel imbalances, underscoring the need for measures on the consumption side.

"One key initiative is diversifying the fuel portfolio, as the decline in alternative fuels like CNG has contributed to increased gasoline consumption in recent years," he said.

The deputy oil minister noted that last year’s average daily CNG consumption was 22 million cubic meters, which has dropped to 18 million cubic meters this year.

"This 4 million cubic meter decline in CNG consumption has directly led to higher gasoline usage. Therefore, we must develop alternative fuels like CNG and LPG, for which we have already prepared the infrastructure," he said.

Launching systems to combat fuel smuggling

Azimifar highlighted that combating fuel smuggling is a priority for the president. "In collaboration with the Anti-Smuggling Headquarters, we have finalized a series of measures to address fuel smuggling, which will be unveiled soon," he said.

He explained that the focus is on smartening and implementing measurement systems.

"A significant portion of smuggling occurring in transmission, distribution, and consumption can be managed through smart systems and modern tools, reducing smuggling activities," the official added.

News ID 652651

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