It is tasked with processing gas supplied from the four independent Tabnak, Shanol, Homa, and Varavi gas fields in Fars. The facility’s nominal gas processing capacity currently stands at 80.6 mcm/d. The processed gas is fed into the national gas grid to be used by households, industrial, and business purposes across Iran. The gas condensate from this refinery is also delivered to refineries and petrochemical plants for the production of gasoline and aromatics.Alamdar Babaei, the CEO of the Parsian Gas Refinery, has told “Iran Petroleum” that it produced over 17 bcm of gas and 4 million barrels of condensate last calendar year. “In a bid to improve its efficiency and reduce its costs, the Parsian gas refinery envisions numerous projects for the current calendar year. Financing these projects requires attracting domestic and foreign investment,” he said. 

The following is the full text of the interview Babaei gave to “Iran Petroleum”:

What development projects were prioritized during the second half of last calendar year for the Parsian Gas Refinery? How well did they progress?

During the second half of the last calendar year (ending on March 20), numerous projects were envisioned, the most important of which was the overhaul of the turbines of the Parsian 2 power plant. It is now 70% completed. In parallel, corrosion control measures were implemented entirely at Unit 400 and Unit 500. A risk-based inspection (RBI) system has also been underway, with 30% progress now. Generally speaking, by implementing these projects, we intend to improve the performance of the refinery and upgrade its operational systems. Other development measures underway include completing the operational residential facilities, infrastructure installations, and water supply network. Like in similar refineries, the main focus is upon sustainable output and improved reliability through optimal management of operations and physical assets at the Persian refinery. New projects are pursued in such a direction.

How much gas did this refinery produce last calendar year?

It produced a total of 17.585 bcm of gas and 4.515 million barrels of condensate, up respectively 9.8% and 3.5% year-on-year. Meanwhile, 1.264 bcm of gas was delivered to Parsian Sepehr Refining Co., up 21.8% year-on-year. Such growth is mainly due to the timely maintenance and optimization of the refinery equipment. Therefore, gas and condensate delivery have significantly increased.

What have you done to upgrade the refinery equipment?

Last calendar year (ending on March 20), in addition to supplying common consumer commodities, we undertook effective measures to supply commodities required for overhaul, as well as some other equipment like KV valve, tube bundle, reboiler transducer, flare tip unit 400 and 500, and Siemens turbine compressor blades. Some equipment has been purchased for firefighting. For overhauling and upgrading compressor stations’ turbines, we supplied spare parts for more than €1.25 million. Hence, the refinery was upgraded with a high-quality project implementation.

What development projects do you plan in the current calendar year? How much investment would be needed?

Building a sweetening unit to compensate for the shortage of feedstock supply from the upstream sector, implementing flare gas sale projects, and reforming high-pressure flare networks at Parsian 2 for reducing environmental pollution, energy management, and increased safety are among the projects we have underway in the current calendar year. Significant investment is needed for these projects. For instance, reforming the high-pressure flare network of Parisan 2 would require IRR 1,300 billion, and building a sweetening unit would require more than €300 million in investment. To provide this investment, talks have been held with domestic resources and the private sector, while plans have been made for attracting foreign investment. As required by the Directorate-General of Supervision on Petroleum Product Exports and Exchanges, installation of a metering station for the gas delivered to the national trunkline and the installation of a metering system for the condensate delivered to Petro Peyman Dana are underway. Moreover, launching a 100MW power plant using local know-how for power supply and building a 132kV substation is underway.

How much capacity increase do you predict with the new projects?

We predict that the development and operation of the Eram and Pazanan fields and the construction of a sweetening unit in the coming years would bring the Parisan gas refinery’s capacity to 30 mcm/d. The Eram gas field with 19 tcf (540 bcm) of gas in place, 13 tcf (370 bcm) of which is recoverable, lies 200 km south of Shiraz. The Pazanan gas field also holds 19.5 tcf of gas in place and 436 million barrels of condensate.

Have any measures been taken to use innovative and emerging technologies to enable the refinery to boost its efficacy?

Yes, in a bid to improve its efficiency and reduce costs, new technologies have been used in the Parsian gas refinery. For instance, cleaner robots for swabbing pipes, building a system to monitor compressors for predicting possible flaws, an equipment corrosion-detecting system using AI-based equipment as well, and using AI for quality control of condensate have been of help.

What achievements has the Parisian gas refinery made following all these measures?

In the second half of last calendar year, the Parisan gas refinery implemented numerous projects and applied modern technologies to improve production capacity, boost safety, and reduce operational costs. These projects, particularly in upgrading equipment, improving refining processes, and applying modern technologies to inspection and repair, have boosted efficiency and reduced costs. The refinery’s outlook is bright for the coming years, as with the current trend of development, the refining capacity of the facility would increase significantly.