Kiani stated that the refinery, acting as the execution arm of Persian
Gulf Petrochemical Industries Company (PGPIC), is prioritizing sustainable
feedstock supply and energy security. "Through strategic upstream
integration, we aim to secure long-term gas supplies for both petrochemical
complexes and the national fuel network,” he said.
Financing Through Pre-Purchase Model
The financing model involves a pre-purchase agreement with Bandar Imam
Petrochemical Company (BIPC), which will fund the development through forward
purchases of feedstock. The project is scheduled for completion within 25
months, requiring precise resource management and cross-sectoral coordination.
Operational Partnership and Environmental Gains
The project is being developed in collaboration with Arvandan Oil and
Gas Company and Khatam al-Anbia Construction Headquarters. Once operational, it
will recover all flare gas from the target fields, significantly reducing
emissions and enhancing gas utilization efficiency.
Capacity Expansion and Gas Allocation
The refinery currently processes around 140–145 million cubic feet of
gas per day but has the capacity to scale up to 500 million cubic feet
(equivalent to over 14,000 tons/day). Currently, 50% of this gas is directed to
the national grid and the remainder is supplied as feedstock to BIPC, Almas
Petrochemical, and for LPG export.
Projected Gas Injection and National Impact
Upon completion of the flare gas recovery project by winter 2025, an
additional 2–3 million cubic meters of gas per day is expected to be injected
into Iran’s national grid. This would relieve pressure on existing resources
and contribute to winter fuel stability.
Addressing Feedstock Shortages
Despite the ambitious plans, only 30% of the refinery’s required
feedstock is currently secured. Kiani noted that immediate action is being
taken through the commissioning of Phase II and direct engagement in gas
gathering operations.
Local Content and Innovation Emphasis
Kiani emphasized the strategic importance of utilizing domestic
capabilities and knowledge-based companies to enhance efficiency, reduce costs,
and meet project timelines. “In today’s context, domestic firms are not just an
option — they are a necessity,” he stressed.
Facility Overview
Located in Jofeir, Hoveizeh Gas Refinery processes sour gas from key
West Karoun fields — including Yadavaran, Yaran, Azadegan, and Darkhovin —
producing CNG, NGL, sulfur, and sweet gas. The facility supplies 250 million
cubic feet/day to the national grid and 90 million to a combined cycle power
plant. It also sends natural gas to BIPC and produces 41 tons of granulated
sulfur daily for industrial and agricultural use.