To that end, the Tehran refinery took the first step by considering a $3.5 billion project. Mohsen Siahpush, chief engineer at the Tehran oil refinery, has said that upgrading the refinery would make all products Euro-5 grade. That would push the Tehran refinery to turn into a petrochemical refinery. Siahpush said this project can play a determining role in the future of energy industry in Iran. He also said that the continuous catalytic reforming (CCR) project to upgrade the quality of gasoline at the facility would be completed by June 2026, which would add 1.5 ml/d to the refinery’s gasoline production capacity.
Euro-5 Gasoline
Siahpush said the CCR unit would bring the quality to gasoline to Euro-5 grade at the Tehran refinery. The CCR project is aimed at overcoming imbalance in the gasoline production and consumption. It has been formulated based on the necessity to upgrade the quality of gasoline supply by the Tehran oil refinery and in compliance with Euro-5 standards.
Referring to other projects at the Tehran oil refinery, he said: “One key project in the quantitative and qualitative upgrading of gasoline production would be to establish a new unit for separating heavy and light naphtha. By improving the quality of feedstock at the isomerization units and catalytic conversion, octane and yield would increase at two catalytic units, which would directly increase gasoline production by 500,000 l/d.”
He said that construction of a hexane solvent production unit with a feedstock capacity of 2,000 b/d was being finalized. Hexane is widely used in industries, mainly in chemical and painting, paper making, pharmaceutical, cosmetics and healthcare, tire making and glue industries. This unit is expected to come online by next March.
Gasoil Production
Siahpush said the Tehran refinery has been supplying Euro-5 gasoil for years, adding that the jet fuel supplied by this facility was of high quality in terms of quality and volume when compared with other refineries in the country.
Gasoil is largely used in the transportation sector and power plants among other sectors. It is the main fuel in heavy transport. Meantime, gasoil is used to keep power plants running when power consumption peaks. Therefore, this refined product is highly significant.
During the recently-held Oil Show in Tehran, Tehran Oil Refining Co. (TORC) signed an agreement to purchase cold filter plugging point (CFPP). (CFPP) is the lowest temperature, expressed in degrees Celsius, at which a given volume of diesel type of fuel still passes through a standardized filtration device in a specified time when cooled under certain conditions. This test gives an estimate for the lowest temperature that a fuel will give trouble free flow in certain fuel systems. This is important as in cold temperate countries, a high cold filter plugging point will clog up vehicle engines more easily.
“Gasoil naturally holds big amounts of paraffin that tends to crystalize and form solid structures at low temperatures. That would result in reducing fuel efficiency, filter blockage and disruption in diesel engine operation,” said Siahpush. “As the minimum temperature reported in Tehran is -18 degrees Celsius with CFPP of Euro-grade gasoil in the range of -6 to 0 degrees Celsius, quality contradiction is reported mainly in cold seasons.”
“The determined amount of CFPP is expected to be -12 in cold seasons and -5 in hot seasons at most. Therefore, CFPP works as an improver to help diesel engines run better at low temperatures,” he said, adding that the CFPP agreement would be a key step in favor of local production of this additive and upgrading production standards and optimizing the performance of refineries in using diesel fuel.
High Return
Siahpush referred to the amount of investment needed for refining residues and upgrading the value-added of fuel oil at the Tehran refinery, saying: “Basic studies have been conducted for this project with an estimated $3.5 billion in investment needed. The project would have a good rate of return on investment. In addition to governing products, high-value products like propylene and low-sulfur shipping fuel would be produced.”
Regarding application of modern technologies in this project, he said: “The Research Institute of Petroleum Industry (RIPI) would be with us. We can benefit from local capacities in removing asphalt with solvents and other necessary technologies.”
“The economic feasibility studies have been conducted and the first phase including fuel oil refining and establishment of off-site units has been carried out. We’re in the process of receiving technical knowhow and signing agreements.”
Downstream Chain
Siahpush said the Tehran refinery holds 51.32% of the Shazand Petrochemical Plant, adding: “The Tehran refinery is somehow a petrochemical refinery because it holds majority shares in the Shazand Petrochemical Plant and it frequently supplies its feedstock.”
That has occurred upon consent of the Board of Directors of TORC for the purpose of vertical development and completion of the value chain of refined products, preventing crude sales with an approach to petrochemical refining and supply of higher-value products.
With a refining capacity of 250,000 b/d, the Tehran oil refinery holds a 14% share in national oil processing capacity. It enjoys a strategic position in supplying energy to central, northern and northeastern Iran. By supplying about 7 ml/d of gasoline and 14 ml/d of gasoil, the facility is key in fuel security. Implementing such big projects as the CCR unit, developing Euro-6 gasoil production, building oil and gas separation units and hexane production, on top of the fuel oil quality upgrading with $3.5 billion investment would place this refinery on track to become a sophisticated and lucrative petrochemical refinery, an objective which is being realized by reliance on local capabilities, technological innovations and development-oriented approach.
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