Iran’s Oil Minister Javad Owji said plans are under way to enhance the country’s refining capacity.
Speaking in an interview with Radio Eghtesad on Wednesday, 15th September 2021, about the 13th administration’s plan to develop refining industries and build petroleum refineries, Owji said: "Considering the current production capacity of petroleum products in the country's oil refineries, increasing refining capacity is a must,” reported the News Agency of Iran Oil Ministry.
He said: “We have two plans in this regard; the first plan is to boost the capacity of existing refineries (both those fed by crude oil and those fed by gas condensate) in terms of quality and quantity of products; the second plan is to build new refineries or petroleum refineries."
Owji stated: "Fortunately, there is a good legal mechanism with regard to supporting downstream oil industries…, and a permit that is given in line with guaranteed feedstock supply can be a good incentive for investors and, God willing, with the support of the 13th administration, we will undoubtedly increase refining capacity within the next three to four years, as is the case with the Economy of Resilience and the prevention of crude sales.”
Owji said that petroleum products have a very good market and fewer problems in the field of sanctions, adding: "According to the demand of neighboring countries and the region, whatever invested in this field has a favorable exchange rate, will create jobs and prevent crude sales."
Announcing that contracts have been signed with eight capable investors in this field for refining about 1.5 to 1.6 mbpd, he said: “We expect 1.5 times increase in refining capacity in 3 to 4 years from currently 2.2 mbpd to 3.4 or 3.5 mbpd.”
Asked about the Oil Ministry’s plans to swap gas and decentralize gas resources, Owji said: "Iran has the world's second largest gas reserves with 33,000 billion cubic meters of extractable gas, but unfortunately our share of gas trade in the region and the world is less than 2%.”
Emphasizing that in the gas industry, not only the issue of exports should be discussed, but also imports, swap and transit sectors can generate different revenues, he added: “Russia, enjoying the largest gas reserves in the world, imports, swaps and transits gas along with exports; therefore, one of our plans on the agenda is to discuss strong energy diplomacy, especially in the gas sector, given the favorable capacities in the markets of countries in the region, including Qatar and Turkmenistan.”
Regarding the petrochemical industry, Owji said: "We can build chemical parks in most areas, even low-income areas; we have more than 65 petrochemical complexes in the country, which according to the optimal capacity of these complexes, there is a capacity of 40 million tons of petrochemical products.”