National Iranian Oil Refining and Distribution Company

Iran's Abadan Refinery, built 1913.

National Iranian Oil Refining and Distribution Company (NIORDC) is part of the Ministry of Petroleum of Iran. NIORDC was established on 8 March 1991 and undertook to perform all operations relating to refining and distribution of oil products.

Although NIORDC was formed in the 1990s, the company has actually inherited 90 years of Iran’s oil industries' experiences in the fields of refining, transfer and distribution of oil products, as well as, engineering and construction of installations of oil industries.

Responsibilities and duties (As of 2009)

• Refining crude oil and producing a variety of oil products.
• Transferring crude oil from production bases and “Khazar Terminal” to the refineries and also transferring oil products from refineries and import bases to distribution procurement depots and distribution centres.
• Performing all refining projects and schemes, transfer and storing.
• Production, transfer and distribution of 250 million litres of oil products per day.
• Daily export of around 60 million litres of oil products abroad via oil terminals.
• Providing different sectors – industry, agriculture and power plants – with fuel and feed regularly e.g. petrochemical complexes.
• Providing consuming fuel to residential sector, business sector in urban and the peasantry communities all over the country.
• Providing more than 7 million vehicles – heavy and light – in the transportation sector with their required daily fuel.

Installations and capabilities

Iran's gasoline and gas-oil production and consumption projection (2008-2012)

Tehran Oil Refinery

As of 2010, NIORDC had 19 subsidiaries and affiliated companies, including 9 oil existing refineries.^[1] Between 2007 and 2012, oil refining capacity for crude oil and gas condensate would increase from 1,600,000 barrels per day (250,000 m³/d) to 3,300,000 barrels per day (520,000 m³/d).^[2] By 2009, Iran had a total refining capacity of 1,860,000 barrels per day (296,000 m³/d).^[3]

Other facilities:

• Fourteen thousand kilometers of crude oil and oil product transfer pipelines.
• 150 pumping stations.
• Oil industry telecommunication network.
• Operational zones for pipelines and telecommunication.
• 35 operational zones for NIOPDC.
• 220 operational areas for NIOPDC.
• Storage tank installations with 10 billion litre capacity (2009).^[7] As of 2010, the storage capacity of oil products in the country was around 11.5 billion liters, but it would reach 16.7 billion liters by the end of the Fifth Five Year Development Plan (2010-2015).^[8]

Fuel imports

In 2008 Iran has imported nearly 40% of its market needs because of lack of refining capacity and contraband.^[9] In 2009, Iran spent paid $11 billion on imported fuel.^[9] In 2010, gasoline import declined to 30% of its market needs at 25 million liters of gasoline and 11 million liters of diesel fuel per day.^[10][11]

As of July 2010, Iran produces between 280,000 barrels (45,000 m³) and 285,000 barrels (45,300 m³) of gasoline a day and until recently had acquired the remaining 30 percent, which is about 115,000 barrels per day (18,300 m³/d) to 120,000 barrels per day (19,000 m³/d), through big oil companies.^[12]

Average daily gasoline consumption stood at 73 million liters in 2006 but fell to 64 million liters per day in 2007 concurrent with gasoline rationing plan and to 61 million liters after the full implementation of the first phase of the subsidy reforms plan.^[13] Gasoline production would reach 70 million liters per day in 2013.^[13]

Major gasoline suppliers to Iran historically have been India, Turkmenistan, Azerbaijan, the Netherlands, France, Singapore, and the United Arab Emirates.^[14][15] The Financial Times reported that Vitol, Glencore, Trafigura and other (western) companies had since stopped supplying petrol to Iran because of international sanctions.^[16] In 2006, Vitol, a MNC based in Switzerland, supplied Iran with 60% of its total gasoline cargo imports.^[14] In September 2010, Iran claimed that it has stopped importing gasoline according to the domestic capacity expansion plans.^[17] This statement was later denied by the government of Hassan Rouhani.^[18] In 2014 Iran will import 10-11 million liters of gasoline per day overall,^[19] including 8-10 million liters of premium gasoline from India per day because some of the gasoline produced domestically does not meet the Euro-5 quality standards^[20] and because of the continued fuel smuggling.

Oil product increase projection for gasoline, gas-oil, kerosene, LPG (2007-2012)

New facilities

After completion of 7 new refineries and improvement to the existing refineries at a cost of $26 billion; along with the implementation of the subsidy reform plan to cut demand, it is possible that Iran would cease being a gasoline importer by 2010-2011 and will become a net exporter by 2013-2015.^{[12][21][22][23]} While the country remains dependent on small gasoline and diesel imports, net gasoline imports in 2013 averaged only 33 000 bpd. This compares to refined product imports of 182 000 bpd in 2009, of which two thirds was gasoline (approximately 132 000 bpd).^[24]

Planned in 2011, Qeshm refinery (capable of processing heavy crude oil) will have an output capacity of 30,000 barrels a day of light oil products and will become operational by 2014.^[29]

Policy

• Providing desirable fuel supplying services and supplying feed of industries and factories all over the country in due time.
• Reducing consumption rate through employing energy consumption management and raising export rate to make foreign currency.
• Reducing waste materials through improving efficiency in refining and distribution system.
• Reducing environment pollution to reach stable development.
• Raising human force productivity and promoting level of training.
• Increasing output of refinery facilities and transfer are distribution of oil products.
• Reducing cost of production, transfer and distribution of oil products.

Subsidiary companies

The NIORDC subsidiaries are as follows:

• National Iranian Oil Products Distribution Co.
• Management of Construction & Development of "CNG" Stations Co.
• National Iranian Oil Engineering and Construction Co. (NIOEC)
• Oil Pipeline and Telecommunication Co.
• Oil Refining Co.

See also

• Petroleum industry in Iran
• Abadan Refinery
• List of oil refineries
• 2007 Gas Rationing Plan in Iran
• National Iranian Oil Company

References

External links

• Official NIORDC Website
  • Iran's Refinery Expansion Projects

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