Located in Sarakhs near the Khangiran gas field, the Khangiran gas refinery plays a crucial role in ensuring a stable energy supply to Iran’s Khorasan provinces and northern regions. With its high natural gas processing capacity, the refinery is one of the main pillars of the national gas transmission and distribution network. Its steady performance directly affects gas flow reliability for both residential and industrial sectors.

The refinery reaffirmed its strategic position within Iran’s gas industry this year by maintaining the historic daily production record of 58.042 million cubic meters. This achievement resulted from well-executed overhaul programs, equipment upgrades, expanded processing and storage capacity, and the expertise of domestic specialists.

In winter, the refinery injects up to 58 million cubic meters of gas per day into the national network—equivalent to about 7 percent of Iran’s total gas production. Major overhauls of all five sour gas treatment units were completed as planned this year, ensuring readiness for peak production in the cold months.

In an interview with Shana, Managing Director Yahya Feyzi outlined the refinery’s recent achievements, development plans, and upcoming challenges.

 Role in Iran’s gas supply

During winter, the refinery supplies up to 58 million cubic meters of gas daily to the national network, roughly 7 percent of the country’s total. As the only gas producer in northeastern Iran, it plays a vital role in meeting regional energy demand.

The nominal capacity of the sour gas treatment units is 41.5 million cubic meters per day, now expanded to 50 million. Additionally, the Shourijeh underground gas storage facility helps maintain supply stability — about 10 million cubic meters of gas per day are injected and stored during the first eight months of the year, while 20 million cubic meters are withdrawn daily during the cold season to meet rising demand. Gas injection to this facility has now increased to 13 million cubic meters per day.

 Product portfolio

Beyond gas processing and storage, the refinery converts toxic gases from processing operations into sulfur through recovery units, producing around 480,000 tons of sulfur annually. It also includes a small oil refinery that processes condensates into products such as solvents, naphtha, kerosene, and diesel.

 Key achievements

Over the past year, the refinery exceeded its production targets. In October and November, output was 4 million and 22 million cubic meters above plan, respectively, resulting in an additional 720 million cubic meters of gas injected into the national network. This surplus enabled northern power plants to maintain their gas supply.

Last winter’s production record of 58.042 million cubic meters per day marked the refinery’s highest output since its establishment. Thanks to careful maintenance planning and efficient operation by its workforce, all units operated continuously during the last four months of the Iranian year without any production decline.

 Winter preparedness, maintenance

Comprehensive maintenance operations, similar to other national gas refineries, were completed during the summer. Necessary equipment, materials, and chemical supplies were secured, and personnel training programs were carried out to ensure readiness for winter demand peaks.

The annual overhaul starts in early April and concludes in September. This year, all five sour gas units were successfully overhauled. The only ongoing task is the replacement of catalysts in the second sulfur recovery unit, expected to finish by mid-October. Once complete, there will be no barriers to maximum production levels.

 Alignment with national energy goals

Feyzi emphasized that the refinery supports the Oil Ministry’s broader energy supply goals. “The ministry plays a key role in securing the nation’s fuel and gas needs, and this refinery contributes to that mission as a reliable member of the energy chain,” he said.

 Challenges and long-term plans

While challenges exist, Feyzi said they are viewed as opportunities for growth. A 10-year strategic roadmap has been developed, addressing key issues such as sour gas feedstock supply, water management, stable electricity generation, and timely equipment replacement.

Another major focus is human capital development, including a succession plan to ensure future technical leadership. The comprehensive 10-year plan will soon be submitted to the National Iranian Gas Company.

 Coping with sanctions

“Sanctions are not new to us,” Feyzi noted. “Thanks to our resilient economy, we have achieved self-sufficiency in most areas of the oil and gas industry.” Nearly 100 percent of mechanical parts and tools used in the refinery are now domestically produced, he said, ensuring that sanctions have no impact on stable production.

 Innovation and environmental efficiency

The refinery has dramatically reduced gas flaring. Initially, about 24,000 cubic meters of waste gas per hour were burned, but that figure has now dropped to less than 700 cubic meters per hour. This achievement aligns with Iran’s Sixth Development Plan and allows recovery of enough gas to supply three cities the size of Sarakhs, Khaf, and Kashmar.

Another major initiative, the acid gas concentration project, has improved furnace efficiency by raising the sulfur recovery unit temperature from 860°C to nearly 1,000°C, increasing sulfur output by 11,000 tons annually and reducing catalyst replacement needs.

The refinery also captures carbon dioxide — roughly 6 percent of the raw gas feed — at a purity level of 96 percent, producing 400 tons daily. This CO₂ is auctioned to a knowledge-based company for use in value-added products, with future plans for liquid CO₂ exports.

Environmental protection remains a top priority. Fuel gas consumption has fallen from 3.9 percent to 2.5 percent of total input gas, while water use has dropped from 4,000 to 2,500 cubic meters per day thanks to wastewater treatment and recycling projects. The new acid gas concentration unit and increased sulfur recovery have also significantly reduced SO₂ emissions. Most sulfur produced is granulated to prevent environmental contamination during transport.

 Collaboration with NTBFs

Feyzi said the refinery’s success depends on close collaboration with universities, research centers, and new technology-based firms (NTBFs). The refinery has signed multiple agreements with academic institutions and innovation parks to apply cutting-edge technologies and scientific expertise to its operations.

NTBFs have actively contributed to key projects such as flare gas recovery, acid gas concentration, and water recycling.

 Social responsibility and local development

The refinery’s sustainability framework is built on three pillars: economy, environment, and social responsibility. Feyzi said the gas wealth of Khangiran and Sarakhs should directly benefit local residents.

Through community empowerment, job creation, and the establishment of an innovation and business incubator, the refinery supports local entrepreneurs. The incubator — the first of its kind among Oil Ministry facilities — helps young innovators develop ideas into market-ready products.

Products from these startups fall into two categories: industrial items used in oil and gas operations, and goods that meet community needs. Since its founding in 2017, five startups have reached profitability, while 17 others are active.

By training and employing local contractors, a significant share of the refinery’s maintenance and projects are now handled by Sarakhs-based teams, some of whom have expanded to serve other refineries as well.

By Mojgan Faraji