China’s Sinopec Secures Deal For $1.2bn Upgrade Of Iran’s Largest Refinery

Sinopec is upgrading the Abadan refinery to reduce fuel oil output and boost gasoline and distillates. Through expansions and new projects, Iran aims to become an established products exporter.

Chinese state oil giant Sinopec has finalized an agreement with Iran’s oil ministry for a $1.2bn upgrade of the 400,000 b/d Abadan refinery. Work on the project is expected to begin in December.

The project is intended to increase output of high-end Euro-4 spec gasoline and middle distillates while reducing fuel oil output, Abbas Kazemi, Managing Director of Iranian state refiner NIORDC, tells state news agency Mehr.

The Abadan upgrade will boost light products output by 54,700 b/d: 14,500 b/d gasoline, 24,500 b/d kerosene, 6,300 b/d gasoil and 9,400 b/d LPG. Mr Kazemi estimates the upgrade will reduce Abadan’s fuel oil production from the current 40% to “less than 10%.” Fuel oil demand is falling as rising gas production squeezes it out of the energy mix (see p4). (CONTINUED - 692 WORDS)


table Abadan Refinery Output (2013-14, '000 B/D)