JGC interested to develop Iranian refineries

The Japanese JGC company is interested in developing Iranian refineries in Isfahan and Bandar Abbas, the chief of the company said. Yatsu Hashi told that his company has signed an agreement with the state-run National Iranian Oil Engineering and Construction Company to develop Arak Refinery.
"Japanese companies are willing to increase their cooperation with Iran in industrial domains," he said. The Japanese official added that Iran is a big holder of oil and gas in the world and "cooperation with this country is of prime significance for us."

The development project would increase Arak capacity from 170,000 bpd to 250,000 barrels. New units would be set up at Arak Refinery to offer projects up to the Europe-2005 standards. JGC, holding 49 % of the project, has promised to finish the job in five years.
The Japanese company will carry out its feasibility study in 11 months. The project is estimated to cost $ 25 mm he said, adding that Arak Refinery would convert pitch into gasoline once itis developed.

Arak Refinery would raise gasoline production from 29,0000 barrels to 103,000 bpd, gas production from 47,000 barrels to 65,000 bpd and kerosene production from 26,000 to 35,000 bpd. The refinery would also boost sulphur output from 60 to 600 tpd and decrease furnace oil production from 38,000 barrels to 17,000 bpd.
Development of Arak Refinery would be also of help for CROS project. Under the CROS project inaugurated in the Caspian port of Neka, Iran will take crude from Russia, Kazakhstan and Turkmenistan and pump it to its refineries in the cities of Teheran and Tabriz. In return, Iran will sell its own oil from Persian Gulf ports on behalf of the Caspian producers.

CROS already has a capacity to handle 170,000 bpd, which will climb to a peak capacity of 500,000 bpd. No exact timeframe was given for reaching full capacity.
The CROS project is Teheran's response to Washington's opposition to construction of a major pipeline to carry crude from the Caucasus to the Persian Gulf through Iran. Instead, Washington has given it's backing to a $ 3 bn pipeline from Baku in Azerbaijan, through Georgia, to the Turkish Mediterranean port of Ceyhan.