Iran General NewsSinopec starts up refining unit in Iran's Arak plant

Sinopec starts up refining unit in Iran’s Arak plant

-

Reuters: Sinopec Engineering Inc. (SEI), an arm of Sinopec Group, started up a unit this week in Iran’s Arak refinery, offering a rare clue on the progress the state-run Chinese oil firm is making in the sanctions-hit country.

By Chen Aizhu

BEIJING Aug 19 (Reuters) – Sinopec Engineering Inc. (SEI), an arm of Sinopec Group, started up a unit this week in Iran’s Arak refinery, offering a rare clue on the progress the state-run Chinese oil firm is making in the sanctions-hit country.

SEI started a feedstock hydrotreating facility, part of a reforming unit, on Aug. 15, the company said on its website www.sei.com.cn.

A reforming unit produces mostly gasoline, which Iran needs to import despite being OPEC’s second-largest crude exporter because its dilapidated refining sector has for years lacked investment.

The one-line post on the SEI website did not give further details.

Iran aims to add 70,000 barrels per day of gasoline-making capacity around 2011/12 at the Arak refinery in the central Iranian province of Markazi, according to analysts and official estimates.

Sinopec officials have mostly kept mum about the company’s work in Iran, which is under U.S.-led sanctions due to Tehran’s disputed nuclear programme. The Chinese firm’s main investment in Iran is a $2 billion deal to develop the Yadavaran oilfield, agreed in late 2007.

Sinopec Corp , Sinopec Group’s listed arm, is Asia’s largest refiner and buys over half a million barrels of crude oil from Iran a year, making it the world’s largest Iranian oil buyer.

From January this year, Sinopec started importing condensate from Iran under a one-year deal. The deal to import the super light crude oil from the South Pars project is worth some $3 billion a year.

Industry sources have told Reuters that the condensate pact is attached to a multi-billion-dollar agreement under which Sinopec would upgrade and build refineries in Iran, including Arak, Isfahan and Abadan.

It was not immediately clear if SEI’s starting up of the feedstock hydrotreating facility at Arak is part of that alliance. Such a unit typically strips heavy metal components in feedstock such as naphtha or condensate, to smoothe gasoline production. (Editing by Michael Urquhart)

Latest news

Children Fall Victim to Iran’s Middle Age Law

In the first half of this year, 791 babies were born in Iran to mothers who are themselves children...

Iran’s Government Unable To Compensate Investment Backwardness Even in Two Decades

What has been reported by the Iranian government’s statistical institutions speaks about the government’s failure to attract foreign countries...

Eradication of Poverty in Iran Has Become Impossible

In recent years, the growing inflation in the country has led to the spread of poverty in Iran, so...

Iranian Regime Unprepared and Unable To Deal With Aftermath of Major Earthquakes in Iran

As the world acknowledged the International Day for Natural Disaster Reduction on October 13, while other countries have been...

Iran’s Official to People: Our Properties Are Not Your Business

Corruption in Iran is institutional. One of the main aspects of this issue is the transparency over the sale...

Protests in Iran and Abroad for Raisi To Be Held Accountable for His Crimes

Ahead of the COP26 United Nations Climate Change Conference next month, the spokesperson for the Iranian regime’s Foreign Ministry...

Must read

EU set to sharply expand Iran sanctions — diplomats

Reuters: The European Union is expected to significantly expand...

Merkel: Iran nuke program must be halted

AP: German Chancellor Angela Merkel said Saturday that the...

You might also likeRELATED
Recommended to you