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Fuel Oil, Only 18% of Iran Petroleum Products Mix

Fuel Oil, Only 18% of Iran Petroleum Products Mix
TEHRAN (NIORDC) - Assessment of the output of Iranian refineries indicates that only 18% of the country"s output of petroleum products is fuel oil.
According to IRNA, the issue of fuel oil consumption in power plants has become a hot topic these days, for which various culprits have been introduced. One day, the increase in gas exports is blamed; the next day, the reason for this is said to be bad consumption habits, the people and the lack of revision to consumption patterns; and the next day, the high production of fuel oil in Iranian refineries and the inability to export it is blamed.
In fact, the sanctions are introduced as the culprit for the increase in fuel oil production and the inability to export of the item, and this claim is heard while the Iranian Minister of Petroleum has emphasized that there is no problem in fuel oil exports.
Iranian Minister of Petroleum Bijan Zangeneh, in response to some allegations that air pollution has increased due to the consumption of fuel oil in power plants, said: "It is not true to say that because they have excess fuel oil, they should either dump it in the desert or burn it in power plants; we have no problem in exporting fuel oil or any other petroleum products."
Emphasizing that Iran has no limits in fuel oil exports, as in the summer, to some extent, all the country"s fuel oil output is exported, he added: "What was not expected is an increase in gas consumption, which may be due to people"s behavior to counter the coronavirus."
Figures from the National Iranian Oil Products Refining and Distribution Company (NIORDC) also indicate that more than half of the fuel oil storage tanks of power plants and the National Iranian oil products Distribution Company (NIOPDC) are now empty.
This empty capacity is about 2 billion liters, which is equivalent to 40 days of the fuel oil production by all the country"s refineries.
At present, of the capacity of roughly 2.2 million barrels of Iranian refineries, equivalent to 341 million liters of petroleum products, the share of fuel oil production is 64 million liters per day. Moreover, the lion"s share of the country"s fuel oil and diesel mix is consumed in power plants as consumption of gas has increased dramatically in the residential sector.
Therefore, it is necessary to highlight that the delivery of fuel oil and diesel to power plants is done not because of Iran"s reservoirs being full and the country"s inability to export the items, but for the stability of the country"s power grid. Currently, 2.8 billion liters of the NIORDC stocks are empty, and considering the daily production capacity of 64 million liters of fuel oil, refineries can easily operate at full production tilt for nearly two months without worrying about storage capacity running out.
In fact, if there is no shortage of gas for delivery to power plants by reforming the consumption pattern in the domestic sector and preventing the loss of 23 billion cubic meters of gas per year, Iran has the capacity to fully export surplus products and collect the revenue.
Currently, there is 1.5 to 2 million tons per day of demand from the National Iranian Oil Company (NIOC) to export fuel oil, but due to the domestic demand for power plants and avoiding load-shedding, it is not possible to deliver such amounts in full.
A look at the share of fuel oil in the production of petroleum products in Iran also shows that, given the amount of consumption and the existence of export markets, the claim that the stocks are full is not viable. However, some officials still claim a 25 to 40 percent share of fuel oil in the output of Iran"s refineries, which has led to an increase in fuel oil burning in power plants.
Reviewing last calendar year"s performance report of the NIORDC shows that a total of 10 refineries in the country have received 341 million liters of feedstock. Of this amount, about 10 million liters have been used as fuel in refinery furnaces and 332 million liters of products have been produced.
If the claim of some people that 40% of fuel oil is from Iran"s refinery production is veritable, it means that Iran produces 133 million liters of fuel oil per day in its refineries.
The authenticity of these statistics is open to question when we look at the production capacity of other Iranian petroleum products; statistics that have been approved by various institutions.
Iran"s petrol production capacity has reached more than 110 million liters per day by exploiting plans to improve the quality of refineries and commissioning the Persian Gulf Star Refinery.
Iran also produces more than 120 million liters of diesel per day, which is mostly supplied in accordance with Euro standards.
Therefore, a total of 230 million liters of petroleum products produced in Iran are taken by the two most popular fuels, namely petrol and diesel, and considering the total production of Iranian petroleum products, which is 332 million liters per day, the claim of 130 million liters of fuel oil is rejected outright because after subtracting the production capacity of petrol and diesel, only 100 million liters of capacity remains for other petroleum products, which in addition to fuel oil, include kerosene, bitumen, various oils, liquefied petroleum gas, naphtha, etc.
So how can it be claimed that 130 million liters of petroleum products are related to the production of fuel oil in Iran?
Statistics of the National Iranian Oil Refining and Distribution Company also show that the highest fuel oil producer is Abadan refinery, which has a 38% share, and the lowest fuel oil production share with zero% is in the Persian Gulf Star refinery, which has no fuel oil in its portfolio.
The following table shows the share of fuel oil production from the items processed in Iranian refineries.
**************Fuel Oil Output in Iranian Refineries in the calendar year of 1398 (March 21, 2019 to March 20, 2020)
According to these data, Iran produces 64 million liters of fuel oil per day in its 10 refineries, which has an 18% share in the petroleum products" mix, considering the 341 million barrels of feedstock received to the refineries.
Therefore, claiming a 40% share of fuel oil output in Iran"s refineries is more of a media hype than a fact, which is used to divert public opinion from the reality of air pollution in metropolitan areas. 


14:55 - 10/01/2021    /    Number : 12487    /    Show Count : 127