Iran soon to launch Qeshm gas condensate refinery

TEHRAN, Dec. 18 (Xinhua) -- Iran's Qeshm Gas Condensate Refinery, with a processing capacity of 120,000 barrels per day, will go on stream by the end of January next year, Financial Tribune reported on Monday.

Pipe-laying operation and the refining units' installation for the processing facility on Qeshm Island in Persian Gulf, will be carried out in three weeks and the complex will be ready to produce petroleum by-products with Euro-5 quality value, said Hamid Bovard, chief executive officer of Iranian Offshore Oil Company.

"The refinery's feedstock will be provided by offshore platforms in Hengam and South Pars gas fields," Bovard said.

The output will be liquefied petroleum gas, kerosene, diesel, jet fuel and naphtha.

"The project is aimed at providing less expensive natural gas supply and creating much-needed jobs in the region," Bovard added.

The official said through the project Iran planned to transfer the fuels to the port city of Bandar Abbas, Hormozgan Province, and ultimately through a pipeline to Iran's national gas grid.

The second plan is to store the products in the refinery and deliver them to newly-developed industries in Qeshm, he said.

"In case the second plan is approved, grounds will be prepared to build compressed natural gas stations on the island," he added.

Reportedly, the project kicked off in 2004, but it has dragged on because of financial and managerial problems.

Qeshm is estimated to sit atop more than four billion barrels of oil and 283 billion cubic meters of gas in place.

It can become the energy hub in the Persian Gulf and serve as the largest producer of oil, gas and electricity.

Numerous hydrocarbon fields, the strategic Strait of Hormuz, proximity to Oman, connection to national gas network and access to Central Asia markets are among advantages of Qeshm to become an export hub for fossil fuels and derivatives. Enditem