NIORDC Plans to Increase its Refining Capacity by more than 70% in Next Four Years

Iran: National Iranian Oil Refining and Distribution Company (NIORDC), one of the major subsidiaries of the Ministry of Petroleum of Iran, has announced the plan of increasing gasoline refining capacities in next five years in order to cut down the excessive imports of the same in Iranian market. The plan will include developing five new refineries and upgrading five existing refineries in the country. Three out of five upcoming refineries are 300,000 barrel-a-day Bahmangenoo plant at the port of Jask, a 150,000 barrel-a-day facility at Anahita in western Kermanshah province, and the Pars refinery, which will process 120,000 barrels a day of condensate. The refineries to be upgraded are located at Isfahan, Tabriz, Tehran, Bandar Abbas and Abadan. Iran needs about USD14 billion investment to upgrade units at five existing refineries to produce gasoline that burns more cleanly than grades currently available in the country. The new refineries will provide a new direction to Iran refining operations and its gasoline production.

TechSci Research depicts that National Iranian Oil Refining and Distribution Company plans to boost Iranian refining capacity will drive the sales of refining chemicals in the country. Till 2015, majority of the demand for gasoline was met by imports which inhibited the potential growth of refining chemicals market. The new strategy will pump in the required growth to refining operation and refining chemicals such as refining catalysts, pH adjusters and corrosion inhibitors. Moreover, removal of sanctions imposed by the United States and Western European countries is anticipated to bolster exports of processed petroleum products from the country, which is expected to positively influence Iran refinery chemicals market 

According to a recent report published by TechSci Research, “Iran Oil Refinery Chemicals Market By Type, By Application, Competition Forecast and Opportunities, 2011 – 2021”, the oil refinery chemicals market in Iran is projected to grow at a CAGR of 5% over the next five years. In 2015, merchant hydrogen held the largest share in the Iran oil refinery chemicals market, owing to growing demand for hydrogen due to its ability to remove undesirable pollutants from crude oil products. Refining catalysts, pH adjusters and corrosion inhibitors are the other major oil refinery chemicals consumed in Iran. In addition to domestic players, several global players such as Air Liquide, Air Products and Chemicals Inc., and Sud Chemie are also operating in Iran oil refinery chemicals market.