The Ilam Gas Refinery, the only gas refinery in the west of the country, is located in a mountainous and border region in Chavar County—a place where the deep wounds of history still remain in the people's memory. Chavar, a small but memorable town, witnessed one of the bitterest tragedies of the imposed war era on February 12, 1987. On a day when two selected teams from Chavar and the youth of Ilam province had gathered for a friendly match; the Ba'athist Iraqi army's airplanes bombed the football field. This brutal attack took the lives of 10 football players, three children, a referee, and a spectator, injuring six others; this bitter account is told by one of the companions.

Today, in that same wounded land, the Ilam Refinery, as a symbol of resilience and development, plays a vital role in supplying gas to the west of the country; as if from the ashes of war, flames of hope and progress have risen. The Ilam Refinery was established 21 years after those difficult days, in 2007, with a daily capacity to receive 6.8 million cubic meters of gas from the Tang Bijar field, producing strategic products such as natural gas, ethane, LPG, sulfur, and gas condensates. This refinery plays a crucial role in the stability of the gas network, supplying feed for petrochemical and downstream industries in the province, and managing winter consumption peaks.

The implementation of second-phase development projects, flare gas recovery, off-gas compressor operation, energy consumption optimization, and wastewater recycling, alongside reducing emissions and enhancing productivity, have created significant economic and social added value for the region. Furthermore, prioritizing domestic and new technology-based firms (NTBFs) and creating employment for local contractors has strengthened the local economy. An interview by Shana with Rouhollah Nourian, CEO of Ilam Gas Refining Company, provides a clear picture of the refinery's efforts and achievements.

What is the gas processing capacity of the Ilam Refinery, and what share does it have in supplying the country's gas?

As the only gas refinery in the west of the country, the Ilam Refinery not only plays a key role in balancing the pressure of the western network, especially during consumption peaks and winter, but it is also the main supplier of three feeds—ethane, LPG, and condensates—for the Ilam Petrochemical plant. The refinery's nominal capacity includes receiving 6.8 million cubic meters of rich gas from the Tang Bijar fields and the daily production of 5.8 million cubic meters of natural gas, 270 tons of sulfur, 750 tons of raw LPG, 420 tons of ethane, and 7,500 barrels of gas condensates.

The sulfur from the Ilam Refinery, with a purity grade of 99.98%, has the highest purity grade in the country. Numerous research projects are underway in the field of sulfur production, including the production of bentonite fertilizer with a dedicated production line. If economically viable, the refinery has the capacity and facilities to produce it. The capability to produce pastille and lump sulfur also exists.

What notable measures have been taken by this company in the past year, and what impact have they had?

During one year of activity under the 13th government, this company has managed to meet all its production program commitments, especially being in service with 99.4% reliability during the winter. Major projects are underway that play a significant role in increasing production, preventing environmental pollution, and creating economic added value, including the off-gas compressor, 60% progress in the flare gas recovery project, and nearly 90% progress in the cooling tower project, which solves the refinery's temperature issues.

How did you get through last winter, and what notable actions were taken for stable gas production?

Production stability last winter was guaranteed by timely overhaul, and in cooperation with the dispatching department of the National Iranian Gas Company, no pressure fluctuations or disruptions were observed in the western network. Major projects included the commissioning of the PSA nitrogen production package, retrofit of LPG boilers, retrofit of compressors, and the operation of the off-gas compressor. This led to the recovery and economic added value of 5,600 tons of ethane, 14,000 tons of LPG, 5,000 tons of sulfur, and 26 million cubic meters of natural gas that were being flared.

With what objective is the second phase of the refinery being implemented, and what stage is it currently in?

The second phase includes a condensate stabilization unit with a capacity of 600 cubic meters per day, a sweetening unit with a capacity of 3.6 million cubic meters, and a sulfur production unit with a capacity of 270 tons per day. It currently has 90% physical progress and is being executed by colleagues from the Iranian Gas Engineering and Development Company. This phase will add 50% to the total capacity of the refinery's products and will significantly help address the energy imbalance in the west of the country, supply more feed for petrochemical and downstream industries, and create added value in the downstream chain.

What actions have been taken to improve the refinery's productivity?

Numerous projects beyond the second phase are in the domain of energy consumption optimization, including off-gas compressors. One was commissioned last year, and the second compressor will be ready for operation by early Mehr (late September). Flare gas recovery can collect all gases sent to the flare, and other projects in the sweetening unit have reduced energy waste. These projects have collectively led to a 33% reduction in gases sent to the flare, a 22% reduction in steam consumption, a 28% reduction in power consumption, and a 20% reduction in water consumption. Additionally, a wastewater recycling project with a capacity of 600 cubic meters per day has been implemented. Last year, 68,000 cubic meters of water were recycled, of which 37,000 cubic meters were used in industrial and process water domains.

What is the latest status of the refinery's overhaul, and how does it differ from last year's overhaul?

The overhaul is conducted to increase reliability. The refinery's readiness for the cold season and the reliable service of equipment until next year's overhaul—which is based on equipment assessments, risks, and technical inspection outputs—is guaranteed. This year, approximately 64,000 man-hours were forecasted for the overhaul, and 3,000 mechanical, electrical, and instrumentation equipment items have been inspected and repaired. With proper planning and coordination with the headquarters of the National Iranian Gas Company, the overhaul period was reduced from 30 days in 2024 to 24 days this year. It started on August 23 and will continue until September 16.

After this overhaul, is the refinery prepared to enter the cold season?

With timely overhaul and a reduction in unplanned and emergency shutdowns, the refinery has increased product production. Therefore, after the overhaul, there is full readiness to receive feed from the upstream at full capacity and, while supplying feed to the Ilam Petrochemical plant and producing sulfur for domestic industries, proceed with gas injection into the western network.

Given the importance of environmental issues, what plans have been implemented at the refinery to reduce pollutants and recycle waste?

According to assessments by the Department of the Environment, the refinery has no pollution or environmental warnings in the domain of soil and water. In the domain of air, with the flare gas recovery project, which has 60% progress, and the operation of the off-gas compressor, gases sent to the flare have been reduced by 33%, and the move towards a green industry has begun. Therefore, the process of obtaining a green certificate from the Environmental Organization is predicted to be realized after the completion of the flare gas recovery project, which will become operational by the end of the year.

Despite a 10% commitment to environmental standards, the refinery has created over 104% per capita green space. Approximately 25.5 hectares of green space, including sapling planting with native species of the region, have been created, and wastewater recycling has been improved. These measures led to achieving top HSE ratings in various indicators of the National Iranian Gas Company, and the Ilam Refinery obtained first place among refining companies.

To what extent have domestic experts and NTBFs been utilized in the refinery's recent projects, especially the second phase?

In the second phase, all purchases and projects have been prioritized for domestic companies, especially knowledge-based ones. 77% of total purchases were from domestic companies, and so far, 18 project proposals for first-time manufacturing have been submitted to the Vice Presidency for Science and Technology. Four projects, including an ultrasonic scanner, corrosion control, corrosion-resistant coatings, and the production of the critical material dimethyl ethanolamine, have led to contracts. Also, the Kalund project, which involves multi-stream heat exchangers, enhances the critical equipment of cryogenic units.

What impact has the Ilam Refinery had on the province's economy and job creation in the region?

The Ilam Refinery has empowered local contractors throughout its projects and has so far created direct employment for 1,050 people. A large number of contractual workers are also employed in phase one and two projects. The majority of purchases, especially consumable items, are sourced from within the province. In terms of the province's economic cycle, tax payments, contractors' cash flow, and bank accounts opened by the refinery have significantly contributed to the province's economy.

What development plans are on the agenda for the Ilam Refinery?

Alongside the second phase, complementary projects are underway, including the third and fourth turbo-expander compressors, a cooling tower, and an industrial treatment plant with a capacity of 48 liters per second, which will solve temperature and water supply problems. Also, projects for the modification of the 63kV electrical substation, retrofit of compressor and boiler control systems, and upgrading the firefighting system for condensate and LPG storage tanks are in progress. In the digital domain, the Smart HSE Assistant project is one of the notable projects that increases productivity, reduces costs, and enhances refinery efficiency.

What challenges does the refinery face, and what plans are there to address them?

Feed shortage was one challenge. With the development of the refinery's second phase, the National Iranian Oil Company has plans to drill five wells in the upstream fields and develop the Tang Bijar field. The water supply issue is another matter; with the completion of the treatment plant project and based on planning, at least 50% of water capacity will be supplied within the next month. Another challenge is human resources, which requires follow-up at the Ministry of Oil level to resolve employees' livelihood and salary issues.

Interview by

Mojgan Faraji