TEHRAN — The Isfahan Oil Refining Company is advancing a series of strategic projects aimed at easing the country’s energy imbalance and improving fuel quality, the company’s managing director said Tuesday.
Gholamreza Bagheri-Dizaj told a news conference that the refinery’s forthcoming RFCC unit would add 8 million liters of gasoline and 2 million liters of standard gas oil to the national fuel supply each day once operational.
Bagheri-Dizaj said the Isfahan refinery ranks third among the country’s crude-oil-fed refineries in gasoline production. The facility produces an average of 12 million liters of gasoline daily and, with a refining capacity of 430,000 barrels per day, accounts for roughly 25% of national fuel output. All of its gasoline is produced to the Euro-4 standard, he said.
Outlining new strategies for resource management and development projects, Bagheri-Dizaj said execution of the refinery’s strategic initiatives was underway with the goal of addressing energy shortfalls and upgrading fuel quality, using domestic resources and shareholder capital to shorten infrastructure timelines.
He noted that under law, private companies are not directly responsible for certain mandated projects following the privatization of refineries. Even so, he said, the Isfahan complex has directed its project management toward the fastest possible returns for the public and the industry, relying on internal resources and shareholder investment to support the country’s energy security and fuel quality.
Bagheri-Dizaj acknowledged the challenges of improving product quality, saying the company has prioritized building steam, water and gas production units alongside its main units to create stable infrastructure while raising environmental performance to current standards.
He identified improving the quality of gas oil as a key focus of the development program. With about 25% of the country’s gas consumption used by power plants and industry, he said, the refinery is working to produce standard-grade gas oil to replace natural gas in industrial use. Beyond improving the national fuel mix, he said, the shift would free up gas supply and help ease gas shortages during cold months, reducing the risk of restrictions on household and commercial use.
On gasoline-related projects, Bagheri-Dizaj said engineering improvements and greater reliance on domestic capacity have cut the timeline for gasoline quality upgrade projects — including the RFCC unit — from four years to two. The project is now 28% complete and on schedule, he said, with production expected to begin by the Iranian calendar year 1408 (2029-2030).
Once complete, the RFCC project will add 8 million liters per day to gasoline production capacity and 2 million liters per day to high-quality, standard gas oil output, he said, calling it an important step toward stable national fuel supply and reducing shortfalls.
Bagheri-Dizaj also reported 77% progress on the company’s RHU project, which he said is on track for completion by Iranian year 1406 (2027-2028). He said the project’s main benefit would be producing higher-standard products while reducing environmental impact.