Refinery projects prioritized to accelerate development boost fuel output

Refinery projects prioritized to accelerate development, boost fuel output

TEHRAN - Iran is streamlining its refinery development strategy by prioritizing projects that offer higher returns and can be brought online more quickly, Oil Minister Mohsen Paknejad said during a visit to the Tehran Oil Refinery.

Speaking to the press, Paknejad stated that several defined projects, particularly those focused on fuel quality upgrades and increasing output, are expected to come online this year. These projects are key to achieving the targets set in Iran’s Seventh Development Plan.

“The status of the ongoing projects is promising, and we hope they will be completed on schedule,” he said, adding that the ministry’s efforts are currently focused on selecting high-efficiency projects to enter the production cycle sooner.

Paknejad also highlighted plans to reduce crude oil exports in favor of expanding domestic value chains, notably through the development of small-scale refineries and integrated petro-refineries. He emphasized the use of public and private investment as a core component of this strategy.

“In line with the Leader’s call for investing in production, we are actively seeking to attract investments—particularly from private citizens and non-state entities—to finance smaller-scale refinery projects that are better suited to limited-capital environments,” he explained.

He referenced the Shahid Soleimani Refinery project, which began four years ago but has seen slow progress. In response, the oil ministry is now ranking all pending refinery projects based on their speed of deployment and economic returns, with the goal of fast-tracking those that can enter production sooner and more efficiently.

The move comes as Iran looks to curb fuel imports, address energy imbalances, and modernize its refining sector amid rising domestic demand and tightening international sanctions.

EF/MA

source: tehrantimes.com