Tehran Oil Refinery Projects Accelerate

Date: 15 August 2025 - 21:46

News ID: ۱۴۲۵۴۷

TEHRAN – The engineering manager of Tehran Oil Refining Company’s projects Babak Forouzesh-Asl announced that the implementation of the refinery’s initiatives has been expedited under the 14th administration.
Several projects, including urban wastewater treatment, industrial hexane production and connection to the national power grid, are set to launch in the coming months.
Key projects nearing completion include urban wastewater treatment, industrial hexane production and connecting the refinery to the national power grid.
Babak Forouzesh-Asl highlighted that since the start of the new administration, project execution has been streamlined. He credited the National Iranian Oil Refining and Distribution Company for facilitating foreign currency allocations and increased quotas, along with support from the Central Bank and the Ministry of Industry, Mine and Trade.
Regarding fuel quality and infrastructure upgrades, Forouzesh-Asl noted that several key projects aligned with Iran’s Clean Air Law and the Seventh Development Plan (Article 45) are underway. These initiatives aim to improve fuel standards and sustainable infrastructure.
The gasoline quality upgrade project (CCR) is progressing, targeting Euro 5 standards and an increased daily production capacity of 1.5 million liters. Full operation is expected by 2026. Meanwhile, a fuel oil quality improvement project is in the study phase, focusing on meeting international standards. Pending land permits, it will soon enter the bidding stage.
Additionally, the industrial hexane production project, aimed at diversifying refinery output, is expected to become operational this year.
Forouzesh-Asl described the refinery’s power grid connection as a critical infrastructure project, enhancing energy stability and addressing national power shortages. The first phase, including software implementation and pre-launch preparations, will be operational next month.
Due to the refinery’s heavy reliance on sustainable water supply, a wastewater treatment project was initiated to minimize municipal water usage. Once fully operational, around 52,000 cubic meters of treated urban wastewater will be transported daily via a 4-kilometer, 32-inch pipeline to the refinery.
Currently, the refinery consumes about 32,000 cubic meters of water per day. The first phase of the treatment project will process 15,000–20,000 cubic meters daily for industrial use, with full capacity expected to match current consumption, drastically reducing reliance on municipal water.
The treatment process uses reverse osmosis (RO) technology, including sand filtration, ozone injection, carbon filtration, self-cleaning systems, ultrafiltration and RO. Treated water is used in steam production, cooling towers, green spaces and firefighting. Daily lab tests ensure compliance with quality standards.
The project, with an estimated budget of €25 million plus 1.2 trillion rials, is 90% complete.
Forouzesh-Asl emphasized the refinery’s commitment to supporting domestic and knowledge-based companies. Contracts prioritize local capacity, even when some equipment is imported, with Iranian firms handling assembly, development and operation.
In the wastewater project, domestic knowledge-based companies contributed ozone production technology—a complex process mastered by few countries—demonstrating successful localization.
Despite sanctions complicating equipment imports, the refinery relies on local expertise and innovative solutions to minimize delays. Challenges in foreign currency allocation and customs have impacted some projects, but efforts continue to reduce dependence on foreign suppliers.
Forouzesh-Asl acknowledged bureaucratic hurdles in obtaining permits for new projects but noted that AI and smart tools are being introduced to optimize processes, in collaboration with specialized refinery units.