Shiraz old refinery with limited capacity (60,000 barrels per day), based on old processes, can only provide a part of requirements of Fars province. Therefore, following a Cabinet Meeting in Shiraz, relevant licenses for developing a new refinery with the capacity of 120,000 barrels of condensates in Fars province were approved. Parsian Oil and Gas Development Group was announced winner at the bid for 80% share of Pars Shiraz Refining issued on December 9, 2014.
The importance of implementing this plan for Parsian Oil and Gas Development Group, which has the majority ownership shares in Shiraz and Tabriz refineries, is expanding its role in refinery industry and helping the quality improvement of Shiraz refinery's existing products as well.
The feed requirement of the refinery consists of 120,000 barrels / day of mixed gas condensates, which is supplied from Asaluyeh by pipelines. Additionally, in order to promote the quality improvement, the kerosene and gas oil produced at Shiraz refinery is delivered to the gas oil refining unit of this refinery for the production of diesel and gasoline according to international standards.
Based on the project feasibility study, the estimated investment cost for the pipeline and the refinery is US$1,851 million. The most specific feature of this project is the conversion of 92% of the feed to valuable products such as LPG, gasoline, jet fuel and diesel. A further important feature of this refinery is using hydrogenator process. Also, by eliminating heavy fuel oil production, the need for establishing cracking or RFCC units which have high initial and operating costs will be avoided, thereby resulting in the reduction of investment and the increase of feed conversion to valuable products.