News & Reports News Year 2010 December , 2010 $1bn invested to improve Iran's gasoline

$1bn invested to improve Iran's gasoline

The managing director of the National Iranian Oil Refining and Distribution Company says that $1 billion has been invested in Tehran Oil Refinery to improve the quality of its gasoline produce.

Mohsen Ghadiri said on Sunday Iran's gasoline production has recently increased by 2 million liters, Mehr news agency reported.

"The capacity for refining oil and oil products at Tehran Oil Refinery has increased to 250,000 barrels per day. At present, about 16 percent of the fuel basket of this refinery pertains to gasoline and 30 percent to diesel," he said.

The official noted that the project to improve the production quality of the refinery includes the reduction of sulfur and other pollutants in order to get Euro-5 standard, adding that the project is 90 percent complete and will be finished by the next year.

"The gasoline produced at Tehran Oil Refinery is unparalleled in the world in terms of quality. … Upon exploitation of the said projects, the octane number of the gasoline produced at Tehran Oil Refinery will increase by three units and reach 90. At present, the standard of Oil Ministry for local production of gasoline is an octane number of 87," he said.

The Euro-5 is one of the European emission standards which define the acceptable limits for exhaust emissions of automobiles. The emission standards are defined in a series of European Union directives staging the progressive introduction of increasingly stringent standards.

He further stated that at the moment many projects are underway at the refinery, saying, "Based on the timetable, the new gasoline production unit of the refinery will become operational by September of 2011 with a daily output of about two million liters."

He went on to say that some 40 percent of stocks of the refinery have been ceded to the non-governmental sector and it is expected that the remaining portion would be presented by the next year.

"Based on an agreement between Iran's oil and economy ministries, all stocks of the oil refineries nationwide, except for Bandar Abbas and Abadan oil refineries, will be ceded to the non-governmental sector," he noted.

Tehran Oil Refinery, also known as Tondgouyan Refinery, produces an average of 400 thousand liters of liquid gas, 6.6 million liters of gasoline, 3 million liters of kerosene, 13 million liters of gas oil and 10 million liters of fuel oil each day.

Earlier in December, Iranian Oil Minister Massoud Mirkazemi announced that Iran plans to boost its domestic gasoline production by 10 million liters per day.

"With the inauguration of development projects in the country's oil refineries by late March, the country's oil production will increase by at least 10 million liters per day," he said.

Moreover, National Iranian Oil Products Distribution Company Managing Director Farid Ameri said last week that Iran will increase its fuel storage capacity by 5 billion barrels to reach 16.7 billion liters.

The current storage capacity of oil products in the country is around 11.5 billion liters, but it will reach 16.7 billion liters by the end of the Fifth Five Year Development Plan (2010-2015), Ameri said.