Gholamreza Bagheri Dizaj has stated that the Esfahan refinery plays a strategic and key role in the oil industry with a share of more than 20 percent in refining crude oil and supplying the country’s needed products. He added that due to the high volume of transactions and turnover, the refinery has a significant share in paying performance and value-added taxes in the province, which is more than 6 to 7 trillion tomans annually. That shows the refinery’s economic position at the provincial and national levels.
He stated that Esfahan oil Refinery Company (EORC) has several subsidiary companies, each of which operates in specialized areas. He noted that Rata Company is responsible for transportation and logistics. Mirdamad Soffe Company is in charge of commercial affairs and product trade, and Molla Sadra Company is active in the sulfur production chain. Stating that the Soffe Water Company plays an important role in supplying the refinery with the water it needs, the CEO of EORC added that more than 1.5 million hemat (thousand billion tomans) is allocated to this company annually. The first phase of EORC water supply project will enter operation in late June, and with its full implementation, the Esfahan Refinery will no longer need to use the province’s drinking water.
He rejected some rumors about the closure of some projects at EORC and said the company has decided prioritize projects. He clarified prioritization means adjusting the speed of project implementation based on needs and regulating financial flow.
Referring to the EORC ‘s fuel oil upgrade project, Bagheri said this project is being implemented with the aim of reducing the sulfur content of fuel oil and producing more valuable products. The first phase of this project will be launched in 2026, which will result in the production of fuel oil with low sulfur content that can be used in power plants without pollution. This will also play an important role in reducing gas imbalances in the cold seasons of the year.
Referring to the production capacity of EORC, he said the design capacity of this refinery is 360,000 barrels per day, but if crude oil is supplied and the country needs it, there is a possibility of increasing the capacity to 430,000 barrels. At a capacity of 360,000 barrels, gasoline production is about 10 million liters per day, and at a capacity of 430,000 barrels, this amount reaches 15 million liters, which is equivalent to establishing a new refinery in the country.
The CEO of EORC noted that the gasoline produced by this refinery fully complies with the Euro 5 standard and added that about 15 million liters of Euro 5 gasoline are produced daily. This constitutes 23 to 24 percent of the refinery’s capacity. Also, under stable conditions, diesel production reaches 25 million liters per day.
Stating that EORC has upgraded more than 70 percent of its products to Euro standards, he added that if we consider the main products, including gasoline, diesel, and fuel oil, more than 60 percent of these products have been upgraded to Euro 5 standards. The only remaining product that is not yet compliant with Euro standards is fuel oil, which accounts for about 18.5 percent of the refinery’s total production. Other products either comply with Euro standards or do not require standardization, as they are used directly in downstream industries.
The CEO of EORC stated that the company is seeking to increase the production capacity of standard products and reduce emissions. He added that by implementing development projects, in addition to increasing the production of Euro 5 gasoline and diesel, feedstock for petrochemicals will also be provided. This will play an important role in improving the quality of the country’s fuel consumption and reducing environmental pollutants.
Bagheri said one of the company’s most important actions in this area is the project to supply water from the sea. This is being implemented by the Soffe Water Company. This project is designed with the aim of replacing drinking and river water with sea water, and its first phase will enter into operation in the coming days.
He stated that investments have also been made in the construction of railway lines, engineering, and equipment purchases. He noted that in addition, the refinery has launched highly advanced wastewater treatment systems to receive and treat Shahinshahr’s urban wastewater, which has the ability to treat twice the current capacity.
The CEO of EORC attributed the delay in the implementation of some projects to problems with suppliers and equipment manufacturers, He said some of this equipment is imported from abroad, and the company has encountered delays of several months to a year in the process of transportation and implementation of obligations. However, there are no problems with the refinery’s financing or management of projects, and our payments have even exceeded the contractual clauses.
