According to NIORDC, Beheshti explained the refining industry's duties and outlook under the five-year plan, noting the government's relationship with refineries. With the privatization of companies under Article 44 of the Constitution, the government has supported refineries by supplying crude oil at a 5% discount relative to FOB Persian Gulf prices. This measure, based on Clause 1, Article 1 of the law amending certain financial regulations, aims to sustain refining operations and meet domestic fuel demand until refineries can operate independently.
Under Article 45 of the Seventh Development Plan, refineries must meet specific conditions to benefit from this discount, including capacity expansion, product quality improvements, reduced fuel oil output, and value-added production. The government is obligated to grant the 5% feedstock discount to existing refineries, provided they comply with the law.
Daily gasoline production target of 129m liters
Beheshti stated that production targets by the end of the Seventh Development Plan include 129 million liters of gasoline, 130 million liters of gas oil, and 49 million liters of fuel oil per day.
He emphasized that inter-agency cooperation is essential for implementing the plan, and refinery shareholders and industry associations must actively pursue compliance. However, the law's implementation may reduce refineries' net profits, affecting funding for quality improvement projects. Additionally, securing technical know-how (licensing) and financing for these projects remains challenging due to international restrictions.
Beheshti noted that capacity expansion projects at Bandar Abbas, Imam Khomeini (Shazand), and Abadan refineries, as well as the new Persian Gulf Star gas condensate refinery, have already begun. Quality improvement projects, including gasoline production, isomerization, and fuel optimization, are also underway.
At Imam Khomeini (Shazand) Refinery, upgrading projects such as RCD and RFCC units have reduced fuel oil output by converting it into higher-value products. Similar projects are planned or in progress at refineries in Tehran, Isfahan, Tabriz, Bandar Abbas, Abadan, Shiraz, and Lavan.
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