By Mahnaz Abdi

Construction of PGSR a big step to nullify sanctions

November 14, 2020 - 15:44

Persian Gulf Star Refinery in Iran’s southern province of Hormozgan is the first of its kind designed based on gas condensate feedstock received from the South Pars gas field which Iran shares with Qatar in the Persian Gulf.

Construction of the refinery started in 2006, but the project was delayed as the result of some mismanagement and also financial limitation due to the West-led sanctions against Iran.

As the largest processing facility for gas condensate in West Asia, PGSR is planned to play a big role to turn Iran into an exporter of gasoline.

This refinery has increased Iran’s gasoline production to 110 million liters per day, while the country’s consumption is 74 million liters.

PGSR has made Iran independent in gasoline production, while an exporter of the product, which has been a big step to nullify the U.S. sanctions.

The refinery’s exported products during the first half of the current Iranian calendar year (March 20-September 21) were 120 percent more than the products exported in the same period of time in the past year.

Such a noticeable increase has been achieved despite the sanctions, PGSR’s Managing Director Mohammad-Ali Dadvar has stated.

Iran has always been considered an importer of gasoline in recent decades. As in the previous round of sanctions, one of the tools of pressure on Iran was the embargo on the sale of gasoline to the country.

Although those sanctions were lifted with the implementation of JCPOA (Iran’s nuclear deal with the world powers, known as Joint Comprehensive Plan of Action), concerns about their return caused the construction of Persian Gulf Star Refinery to be pursued more rapidly and the different phases of this refinery to come into production one by one.

Finally, in January 2019, when the third phase of the refinery was inaugurated, Iran was able not only to eliminate the need to import gasoline but also to export surplus gasoline through the stock exchange and bring more income to the country.

Meanwhile, as Iran has expedited the development of the giant South Pars gas field, the PGSR will receive more feedstock and will produce more products as the result.

As announced by Pars Oil and Gas Company (POGC), which is in charge of developing South Pars gas field, the company has delivered about 60 million barrels of gas condensate to PGSR during the first half of the current year.

Now, Persian Gulf Star Refinery, by which Iran became self-sufficient in gasoline production and became an exporter of this product, receives 375,000 barrels of condensate daily from South Pars gas field as the feedstock.