Gwadar: Iran to build oil refinery

[explorer9]

Then why will Bangladesh thailand malaysia will go far ahead to chabahar when gawader lies in arabian sea wilth already infrastructure in place?
Now the china is building railways not pak from gawadar to Kashgar n not long ago they were studying the terrain for bullet trains in this route too!

Moreover the wordclass road KKH is already there who is going upgrade as we speak upto China and from there they can easily go into CA, bypassing Afghanistan who will still remain problematic country as America leaves because it is leaving Kargai type puppets there who n his successors will work as Raza Shah Pehlvi used to work for america.

so bottom line is...i still think Chabahar will not be a very successful project as compared to Gawadar who is also third deepest port too!!!

Gwador possesses more prospects for many reasons viz its location, Chinese connectivity, warm water deep sea, easy route to CAR & Russia, proposed settlement of Afghanistan in Pakistan's favour and finally Iran's fragile international business relation due to sanctions and intra regional sectarian divide.

 

[Umair Nawaz]

Gwador possesses more prospects for many reasons viz its location, Chinese connectivity, warm water deep sea, easy route to CAR & Russia, proposed settlement of Afghanistan in Pakistan's favour and finally Iran's fragile international business relation due to sanctions and intra regional sectarian divide.

Location is not a Big factor as the distance b/w them is said to be just 180 miles...
But yes there r many other factors too for its more success then Chaabahar like u n i had mentioned...
chabahar will be more kind of indian port in the near future....

 

[explorer9]

Location is not a Big factor as the distance b/w them is said to be just 180 miles...
But yes there r many other factors too for its more success then Chaabahar like u n i had mentioned...
chabahar will be more kind of indian port in the near future....

The term location was precisely meant for the Gwador's Geographical connectivity with China & CAR,Russia with presumed pro Pakistan Afghanistan ( that directly translates in to anti-Iran & anti-India Afghanistan)

 

[Umair Nawaz]

The term location was precisely meant for the Gwador's Geographical connectivity with China & CAR,Russia with presumed pro Pakistan Afghanistan ( that directly translates in to anti-Iran & anti-India Afghanistan)

anything ''pro pak'' DOESNT translates directly/indirectly into anti Iran or yr country........its just how/prospective u wanna look into matters.

 

[niaz]

@ niaz

Before the recent set of sanctions in the past few years Iran was getting some refined oil from countries like Singapore for a reason. If I'm not wrong, 3/4 of the price of the refined product (say petrol) is the oil itself. Out of the remaining 1/4 a good chunk of it is transportation. Now the oil is free for Iran b/c we're the ones producing it and this oil was getting shipped to Singapore and brought back as refined product with Iranian tankers. That means Iran was paying a very small sum of money to get the oil refined.

Transportation was "free" and the oil was also "free," hence, the final cost would be very low.

The alternative was to build new refineries at the cost of tens of billions of dollars!!! With that money Iran was able to get that oil to a third party, refine it and bring it back for more than 2 decades and still save cash. With the sanctions though building new refineries finally became an option.

Of course Iran oil comes from the ground and thus costs only a few dollars per barrel. Nevertheless import of very large quantities needs allocation of lost money earned thru crude exports for financing imports. Being an Iranian you must be aware that Iran government was forced to ration gasoline because of this very reason. I was advised by NIOC staff that total oil export income was about $80-billion and as of 2007 about $7-billion was being spent on gasoline imports!!

Iran imported 6.9-million tons of gasoline in 2009 versus only 2.2 million tons in 2011. It is now less than 1-million tons per annum would soon disappear. Main reason being strict control on smuggling, increase in the price of gasoline (or benzin as it is called in Iran) and the quota system which reduced demand and also due to new refining capacity having come up.

 

[niaz]

I did not compare Iran's oil industry with giants like U.S, South Korea, Japan or Russia.Indeed they are better than us.
About the Shazand refinery, can you kindly provide your proofs that all those companies from Italy,Japan and France have participated in Shazand development program? It seems you are unaware my friend that no foreign country, including China, can not invest more than $20 millions in Iran's oil and gas industry according to U.S sanctions passed by congress.

Japan did sign a contract for development of some refineries in Iran, but it pulled out due to U.S pressure in 2010.The same happened for Chinese, with the difference that Iran kicked them out for delaying to start the project over and over and instead Khatam-al Anbya and NIOC took the project.Iran now produces 80% of equipment required in oil industry according to oil minister and those who are imported, are being implemented by domestic experts.We still have some distance ahead of us,I agree, but in 10 years, we will match giants like Russia and India with fully domestic capabilities.

Right now, there is a project called 'Persian Gulf star' near Bandar Abbas with maximum capacity of 360,000 barrels per day and will produce 35 millions liters of gasoline a day, which mean 60% of Iran's domestic consumption alone.It's 85% owned by domestic contractors and will be completed 1 year from now.
Now would you mind explaining to me, with that $20 millions dollars limitation on investing in Iran's oil and gas industry, how are those foreign companies supposed to build 'most' of Iran's refineries?

Persian Gulf star location

About the Gwadar, it's irrelevant to Chabahar. We will transfer South Asian goods from Chahbahar to Central Asia and Afghanistan. Gwadar on the other hand is China's center of interest which will be a hub for Chinese mostly.Besides, both Gwadar and Chabahar have such capability for development that even both of them won't be enough to fulfill demands in South Asia.So there is no problem with them living together.Also,not to forget,Iran has a better railway system than Pakistan right now and it's being developed even further with good speed.Not to forget stability.

This is not entirely correct. Barter deals hide correct amount of investment and Chinese care very little for the sanctions.

I have been aware of the Persian Gulf Star project when the construction started in 2007. It is runs into 3 phases of 120,000 bbl. per day capacity each. The feed is South Pars Condensate and a 420 kilometre pipeline is being laid from Assaluyeh to Bandar Abbas. This is essentially a Condensate Splitter. First phase of 120,000 bbl. per day should be completed this year.

The project is privately financed by a consortium of Tehran Jonoob, Bina, Golden Group and LPEC ( a subsidiary of Chinese Sinopec).

For Persian Gold Star foreign companies involved were: Main contractors being Saipem Italia (subsidiary of ENI) & EPC of China. Feasibility Studies were conducted by Foster Wheeler. Process Licensors are UOP, AXENS, TOPSOE and Technip.

Refining units LPG Merox – UOP. CCR Reformer – Axens, Isomerisation- UOP, Hydrotreater for Naphtha – Axens, for Gasoline - Haldor Topsoe and for Kerosene - Haldor Topsoe.

As I have mentioned earlier no refining project in the world is without the top companies I noted in the earlier post. Let’s not forget that most of the projects coming on stream now were started before the sanctions.

By the way, you have not kicked the Chinese out. Chines are everywhere. China is also the largest importer of Iranian crude.

Sorry to keep contradicting you but I am in the oil industry since 1967 and spent 9 years from 2002 until 2011 in the UAE oil industry.

A brief description of IranianOil industry is given here:

Iran - Analysis - U.S. Energy Information Administration (EIA)

 

[Serpentine]

This is not entirely correct. Barter deals hide correct amount of investment and Chinese care very little for the sanctions.

I have been aware of the Persian Gulf Star project when the construction started in 2007. It is runs into 3 phases of 120,000 bbl. per day capacity each. The feed is South Pars Condensate and a 420 kilometre pipeline is being laid from Assaluyeh to Bandar Abbas. This is essentially a Condensate Splitter. First phase of 120,000 bbl. per day should be completed this year.

The project is privately financed by a consortium of Tehran Jonoob, Bina, Golden Group and LPEC ( a subsidiary of Chinese Sinopec).

For Persian Gold Star foreign companies involved were: Main contractors being Saipem Italia (subsidiary of ENI) & EPC of China. Feasibility Studies were conducted by Foster Wheeler. Process Licensors are UOP, AXENS, TOPSOE and Technip.

Refining units LPG Merox – UOP. CCR Reformer – Axens, Isomerisation- UOP, Hydrotreater for Naphtha – Axens, for Gasoline - Haldor Topsoe and for Kerosene - Haldor Topsoe.

As I have mentioned earlier no refining project in the world is without the top companies I noted in the earlier post. Let’s not forget that most of the projects coming on stream now were started before the sanctions.

By the way, you have not kicked the Chinese out. Chines are everywhere. China is also the largest importer of Iranian crude.

Sorry to keep contradicting you but I am in the oil industry since 1967 and spent 9 years from 2002 until 2011 in the UAE oil industry.

A brief description of IranianOil industry is given here:

Iran - Analysis - U.S. Energy Information Administration (EIA)

You are an informed guy.You have my full respect.
But the companies you mentioned, especially ENI is no more active in Iran.Iran is now only feeding Eni's refineries to pay back its 1 billion dollar debt to them.That's why ENI was exempted from EU embargo.
You are right, no country builds refineries all on its own, which is true in Iran's case.China is not risking its relations with west by investing in Iran's oil sector.Just look at South Pars phases, almost all of them are given to Iranian contractors,since Europeans pulled out and Chinese had too much delay.
Iran now imports some equipment used in refineries through black market, and produces most of them inside the country.I don't know, maybe there are foreign advisors, but official contractors, especially from giants you mentioned is highly improbable,especially according to oil minister which said most of oil fields,especially associated ones, refineries are being developed mostly relying on domestic capabilities.That's why some projects are delayed so far.
Few days ago, I read a governmental Russian oil company has agreed to invest Iran,and since its 100% governmental, it won't have problems with sanctions.(That's a good question that how the sanctions work actually).

 

[Saleem]

I dont know--last I heard iran send its crude abroad for refining --does it even have its own refinery??????

 

[FaujHistorian]

I dont know--last I heard iran send its crude abroad for refining --does it even have its own refinery??????

Niaz Sahib has given and excellent analysis already.


Now back to the Iran PhanBoyz,

Calm down please if you really want Pakistan to be a thriving economy

Iranian Ayatullah led government is poisoness to the nth degree.

They are sanctioned and they can deep discount their god given wealth and survive.

We do not have oil.

If we get under sanctions, then there is nothing to fall back on.

Many of you posters live outside Pakistan.

So it won't matter to you (personally) if we go under sanctions.

But do not be enemies of Pakistan.

Do not wish Pakistan to go under sanctions.

If you want to drink Ayatullah's pee, go ahead and drink to your heart's content, but do not force us to drink the same.

To my Iranian brothers.

Have mercy on us.

You want to live under sanctions, and under Ayatullah's boots. Please do so at your heart's content

but do not push our poor nation into Shia-ism or sanction-ism.

We cannot squander our oil wealth (as we don't have any), and bypass sanctions.


Please everyone, Pakistan is an oil-less 200 million population country.

Do not push us further into the depths of poverty. We are already struggling.

Thank you.



p.s. Any Iranian pushing Pakistan into sanctions is not our friend and in fact an enemy of 200 million Pakistanis.

 

[Screambowl]

I think if Iran gets the oil from there, we would be able to buy the oil directly from Iran.

 

[Serpentine]

Niaz Sahib has given and excellent analysis already.


Now back to the Iran PhanBoyz,

Calm down please if you really want Pakistan to be a thriving economy

Iranian Ayatullah led government is poisoness to the nth degree.

They are sanctioned and they can deep discount their god given wealth and survive.

We do not have oil.

If we get under sanctions, then there is nothing to fall back on.

Many of you posters live outside Pakistan.

So it won't matter to you (personally) if we go under sanctions.

But do not be enemies of Pakistan.

Do not wish Pakistan to go under sanctions.

If you want to drink Ayatullah's pee, go ahead and drink to your heart's content, but do not force us to drink the same.

To my Iranian brothers.

Have mercy on us.

You want to live under sanctions, and under Ayatullah's boots. Please do so at your heart's content

but do not push our poor nation into Shia-ism or sanction-ism.

We cannot squander our oil wealth (as we don't have any), and bypass sanctions.


Please everyone, Pakistan is an oil-less 200 million population country.

Do not push us further into the depths of poverty. We are already struggling.

Thank you.



p.s. Any Iranian pushing Pakistan into sanctions is not our friend and in fact an enemy of 200 million Pakistanis.

You have a very bitter language,and that's really confusing you call yourself and expert and historian always.No true expert uses these degrading and insulting terms if he is actually using his logic.
If buying gas from Iran is drinking Ayatollah's pee, then you are insulting 180 million fellow Pakistanis who unsurprisingly, most of them think other than the way of yours.

Guess what? Iran's popularity in Pakistan is highest in the world, nearly 80%.Not necessarily the government of Iran, but also its people.But your language regarding Iran is always bitter.

 

[explorer9]

You have a very bitter language,and that's really confusing you call yourself and expert and historian always.No true expert uses these degrading and insulting terms if he is actually using his logic.
If buying gas from Iran is drinking Ayatollah's pee, then you are insulting 180 million fellow Pakistanis who unsurprisingly, most of them think other than the way of yours.

Guess what? Iran's popularity in Pakistan is highest in the world, nearly 80%.Not necessarily the government of Iran, but also its people.But your language regarding Iran is always bitter.

Can you please provide the source of the 80% popularity mark. The only reason for Iranian Popularity in Islamic world in general and Pakistan Particular is anti Americanism/Israelism. After Syrian crisis and Shiet-Sunnite strife in Iraq and Iranian open support to its coreligionist has dwindled Iranian popularity in the said geography.

 

[Serpentine]

Can you please provide the source of the 80% popularity mark. The only reason for Iranian Popularity in Islamic world in general and Pakistan Particular is anti Americanism/Israelism. After Syrian crisis and Shiet-Sunnite strife in Iraq and Iranian open support to its coreligionist has dwindled Iranian popularity in the said geography.

Pew: Iran

Yeah,Syrian crisis have had a negative effect on Iran's popularity among Sunnis,the same way Saudi and Qatari popularity decreased dramatically among Shias,Alawites and many secular Muslims too.

 

[explorer9]

You are an informed guy.You have my full respect.
But the companies you mentioned, especially ENI is no more active in Iran.Iran is now only feeding Eni's refineries to pay back its 1 billion dollar debt to them.That's why ENI was exempted from EU embargo.
You are right, no country builds refineries all on its own, which is true in Iran's case.China is not risking its relations with west by investing in Iran's oil sector.Just look at South Pars phases, almost all of them are given to Iranian contractors,since Europeans pulled out and Chinese had too much delay.
Iran now imports some equipment used in refineries through black market, and produces most of them inside the country.I don't know, maybe there are foreign advisors, but official contractors, especially from giants you mentioned is highly improbable,especially according to oil minister which said most of oil fields,especially associated ones, refineries are being developed mostly relying on domestic capabilities.That's why some projects are delayed so far.
Few days ago, I read a governmental Russian oil company has agreed to invest Iran,and since its 100% governmental, it won't have problems with sanctions.(That's a good question that how the sanctions work actually).

Iran is a big country its produces enough food grains to feed her population, it has huge natural resources at its disposal. Its land mass and population is huge in terms of Middle Eastern region and with its size it can & will find a way to thwart any sanction. Though sanctions have big toll on economy and development yet, not as big to crumble the country.

 

[explorer9]

Pew: Iran

Yeah,Syrian crisis have had a negative effect on Iran's popularity among Sunnis,the same way Saudi and Qatari popularity decreased dramatically among Shias,Alawites and many secular Muslims too.

Actually i wanted to know the source of your 80% mark. IMHO the term Secular is most used & abused (even Holyoke the man who coined this world would repent on that) The "Secular Muslim" is unsubstantiated terminology and used for convenience.