Iran Energy Refining Capabilities
This page is focused on the critical infrastructure that is used by Iran to refine crude oil, natural gas, condensates, and other energy products as of open-source information gathered in Mid-April 2024. This analysis is relevant to the question of Iranian Energy Export Capabilities, which are required for the world to consume Iran's significant energy exports.
We will primarily focus on the capabilities for adding value to raw energy extracts through refinery assets.
After reading a few source documents, we are left with the understanding that refining of crude oil products is a focus for Iran. The current refineries are older, and many produce products that do not meet Western Standards (e.g., gasoline). These products are used domestically in Iran, but there is a pollution cost. Source: Iran International Article, unconfirmed.
Iran is undergoing significant investment initiatives to add new capacity and new capabilities.
As a last note, we are reading from ZeroHedge on September 29, 2023 (an anonymous news outlet), that Iran is working with Syria and Venezuela to export its capabilities and know-how in building, repairing and maintaining its string of 'long in the tooth' refineries. Syria has contracted with Iran and Venezuela to build a new, smaller refinery in Homs with capacity of 140,000 b/d.
Venezuela has contracted with Iran to refurbish, repair and restore its largest refinery, the Paraguana Refining Center, with a capacity of almost 1 million bpd of crude oil capacity using Chinese and Iranian parts and equipment. This is after Iranian efforts to repair El Palito, a smaller oil refinery, in what appears to be a proof of capabilities.
On May 23, 2022, Reuters confirmed the contract with Venezuela for el Palito and Paraguana, although suggested that payment in product, and swap agreements will help both countries avoid sanctions and payment reliability issues.
We will primarily focus on the capabilities for adding value to raw energy extracts through refinery assets.
After reading a few source documents, we are left with the understanding that refining of crude oil products is a focus for Iran. The current refineries are older, and many produce products that do not meet Western Standards (e.g., gasoline). These products are used domestically in Iran, but there is a pollution cost. Source: Iran International Article, unconfirmed.
Iran is undergoing significant investment initiatives to add new capacity and new capabilities.
As a last note, we are reading from ZeroHedge on September 29, 2023 (an anonymous news outlet), that Iran is working with Syria and Venezuela to export its capabilities and know-how in building, repairing and maintaining its string of 'long in the tooth' refineries. Syria has contracted with Iran and Venezuela to build a new, smaller refinery in Homs with capacity of 140,000 b/d.
Venezuela has contracted with Iran to refurbish, repair and restore its largest refinery, the Paraguana Refining Center, with a capacity of almost 1 million bpd of crude oil capacity using Chinese and Iranian parts and equipment. This is after Iranian efforts to repair El Palito, a smaller oil refinery, in what appears to be a proof of capabilities.
On May 23, 2022, Reuters confirmed the contract with Venezuela for el Palito and Paraguana, although suggested that payment in product, and swap agreements will help both countries avoid sanctions and payment reliability issues.
Net Exporter of Refined Products
Currently, Iran is energy independent with significant domestic refining capacity. Iran is a major producer of gasoline and diesel fuel, and fuel oil. The total for 2020, according to one EIA report, suggests Iran has 2.4 million b/d of domestic, crude oil distillation and condensate splitter capacity. The top refinery complexes are as follows (with 2020 nameplate crude oil distillation capacity):
Persian Gulf Star 420
Abadan 360
Isfahan 360
Bandar Abbas 330
Tehran 250
Arak 250
Borzuyeh 120
Tabriz 110
Shiraz 60
Lavan 60
BooAli Sina 40
Kermanshah 22
Others 28
Total 2020 capacity: 2,410 million b/d.
The South Pars field produces natural gas, which feeds the Persian Gulf Star refinery complex for condensate production.
The CIA Factbook provides the following estimates:
Persian Gulf Star 420
Abadan 360
Isfahan 360
Bandar Abbas 330
Tehran 250
Arak 250
Borzuyeh 120
Tabriz 110
Shiraz 60
Lavan 60
BooAli Sina 40
Kermanshah 22
Others 28
Total 2020 capacity: 2,410 million b/d.
The South Pars field produces natural gas, which feeds the Persian Gulf Star refinery complex for condensate production.
The CIA Factbook provides the following estimates:
- Refined Petroleum Consumption: 1.9 million b/d (2019 estimate)
- Refined Petroleum Products: 1.8 million b/d (2015 estimate)
- Refined Petroleum Product Exports: 0.4 million b/d (2015 estimate)
- Refined Petroleum Products Imports 0.1 million b/d (2015 estimate)
Liquified Natural Gas (LNG)
Iran does not have LNG production, import or export capabilities due to sanctions making financing and technology difficult to obtain.
However, there is a desire in Iran to produce and export LNG.
However, there is a desire in Iran to produce and export LNG.
New Refinery Projects
According to Global Data, between 2022 and 2026, Iran will add capacity of 1.4 million b/d in refining capacity, atop its 2.6 million capacity, bringing the total to 4.0 million b/d of crude oil capacity. The next project to come online in 2025 is Siraf, with a capacity of 360 million b/d.
As of 2021, OPEC states Iran's refinery capacity at 2.2 million b/cd.
According to Global Construction Review in 2022, there were a set of projects near Jask (outside the Strait of Hormuz) being funded for $18 billion. They include:
Nargan Company, a Tehran-based oil services and consulting firm, has listed one ongoing project and a group of legacy projects that have been completed (dating back to 1985).
According to the Shana Petro Energy Information Network in 2023, Iran will be working to increase its refining capacity to 3 million b/d. They will do that by completing 'work in process' jobs that have been delayed, and funding new ones.
As of 2021, OPEC states Iran's refinery capacity at 2.2 million b/cd.
According to Global Construction Review in 2022, there were a set of projects near Jask (outside the Strait of Hormuz) being funded for $18 billion. They include:
- Shahid Soleimani Petrochemical Refinery on the Persian Gulf coast, which will process heavy crude, planned to come online by 2027 located in Bandar Abbas, capacity 300,000 b/d. 65% fuels and 35% petrochemicals. This integrated refinery/petrochemical plant will produce diesel (gasoil), gasoline, propylene, jet fuel, ethylene, fuel oil, para-xylene and benzene. (Shana article). This will be co-located with the Persian Gulf Star Refinery in Bandar Abbas.
- Morvarid Makran Refinery in the port of Jask, located to the east of Bandar Abbas, capacity 300,000 b/d, and will produce various fuels. It will run on heavy and extra-heavy crude oil, and 70% of the products would be gasoline, gasoil, LPG and chemicals.
Nargan Company, a Tehran-based oil services and consulting firm, has listed one ongoing project and a group of legacy projects that have been completed (dating back to 1985).
- Esfahan Oil Refining Company, working with Uhde GmbH to work on diesel, sulfur, flaring, LPG, H2, and gasoline units in 2015. Work is still in progress, 9-years long.
According to the Shana Petro Energy Information Network in 2023, Iran will be working to increase its refining capacity to 3 million b/d. They will do that by completing 'work in process' jobs that have been delayed, and funding new ones.
- In 2022, refining capacity was actually 2.2 million b/d fo crude oil and gas condensate. There are approvals by Iran to construct eight integrated refining/petrochemical complexes to run on crude oil and condensate, all supplied and worked by domestic companies. This article also discusses how Iran is exporting its refinery building expertise and know-how.
- In total, there are 13 refining and integrated refining/petrochemical projects announced or in-process which process up to 2.3 million b/d. There are many names on the project list:
- "They include the Khuzestan refinery, Anahita refinery, Mehr Khalij Fars integrated refining/petchem plant, South Adish refinery, Lavan integrated refining/petchem plant, Ghadir refinery, Shasta refinery, Morvarid Makran integrated refining/petchem plant, Entekhab refinery, Javid Energy Partov refinery, Pishgaman Siraf refinery, Setareh Sabz Siraf refinery, and Shahid Soleimani integrated refining/petchem plant."
- In a final note, there are 30 projects 'on the sketch pad' which would have a capacity of 4.3 million b/d.
Primary Source: U.S. Energy Information Administration Country Analysis Brief for Iran. Data presented are the most recently available as of April 30, 2021.
Source: CIA Factbook, Iran Entry
Source: Iran International Article on Iranian Refineries in 2024
Source: Shana Iran News Article on Refineries, 2023
Source: Iran International Article on Iranian Refineries in 2024
Source: Shana Iran News Article on Refineries, 2023