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Iran has launched a new project aimed at enhancing production capacity of Abadan Oil Refinery and stabilizing its operation.
Located in the southwestern city of Abadan. the refinery will process 360.000 barrels/day of crude oil after the project is complete.
Iranian Minister of Petroleum Bijan Zangeneh. attending a ceremony to break grounds for the project. said by the time the project reaches fruition. the refinery will become a profitable facility with a daily refining capacity of 360.000 barrels.
The ceremony was held to start construction of a 210.000 b/d unit at the refinery that will be build by China`s Sinopec.
The plant is now processing 150.000 b/d of crude oil.
For the time being the items supplied by the refinery are not valued much. 40% of the crude oil processed by the facility is turned into fuel oil which is priced less than crude oil.
The refinery registers a yearly loss of $600 to $700 million dollars.
Sinopec has signed a $2.7b deal with an Iranian company for developing the first phase of the project by building a 210.000 b/d refinery unit at the refinery.
Production of Euro-5 petrol. reduction of environmentally harmful emissions. raising production of gasoil and gasoline. reduction of fuel oil production of the refinery. and renovation of worn-out units of the facility are the top objectives of the project.
Abadan Refinery was constructed nearly a century ago with a nameplate capacity of 400.000 b/d but 250.000 b/b of its capacity is supplied by three distillation units with over 70 years of age.
