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EXECUTIVE SUMMARY

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1. EXECUTIVE SUMMARY

NIORDC is planning to construct a gas condensate refinery Park in Southern Iran at
Asalouyeh. Initial capacity is 480,000BPD. A preliminary scheme selection has been made.
This report presents the results of the feasibility study undertaken by NIORDC to
demonstrate the economic and financial viability of the proposed refinery investment.
The refinery will process stabilized gas condensate taken from different phases of the
South Pars Oil and Gas projects. The main design objectives are to produce refined
products that meet desired specifications
2 main process configuration options were considered in this work. An overall refinery
material balance was derived using an LP based approach to determine distillate/product
cut-points that maximize the economic return from the refinery and allow all product
specifications to be met. Each option was then evaluated in terms of its CAPEX, OPEX,
utility usage and Internal Rate of Return to enable one specific configuration to be
identified. Feedstock and product prices used in this study have been provided by
NIORDC.
3.1 Description of Refinery Facilities

The proposed refinery configuration consists of the process units with their respective
capacities presented below:

Process Units Capacities (BPSD)
Condensate Fractionation Unit (CFU) 60000
LPG recovery Unit (LRU) 3100
LPG Treatment Unit (LTU) 3100
Naphtha Hydrotreater (NHT) 34450
Kerosene Treatment Unit (KTU) 3700
Refinery products are:

LPG
Light Naphtha
Heavy Naphtha
J et A1
Diesel
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All utilities are assumed to be imported.
All gas used for firing will be sweet fuel gas. There is no anticipated demand for fuel oil
firing. On this basis, atmospheric emissions from the refinery are likely to be low.
Feedstock is supplied to the site via a 2 km pipeline from Asalouyeh. Refined products are
exported from site via pipelines tobe exported jetty.

3.2 Refinery Material Balance

The refinery material balance that developed by NIORDC for the refinery is as below:
Table 3.1 - Refinery Material Balance
Feed
bbls/day T/day
Condensate
60000 7131
Products

LPG
3100 294.6
Light Naphtha
16000 1718.7
Heavy Naphtha
18450 2183.2
J et Al
3700 456.5
Diesel
18739 2447.97
Fuel gas production (T/day) - 20
Sulphur production (T/day)
-
10

3.3 Product Quality

The proposed refinery configuration successfully meets required specification.

3.4 Process Licensor Considerations

To establish a basis for future technology selection for the Refinery, NIORDC contacted
potential licensors with a general inquiry to solicit their interest in, and ability to participate
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in, the future development of the refinery project as well as to establish the specific units in
which they might be interested. A key objective of this general inquiry was to obtain an
initial indication of the licensors that would be able to license technology to the Project
since some licensors may not be able to deal with the Project due to U.S. Government
sanctions imposed on Iran.
With the responses received, it would be possible to secure licenses for hydrotreating
licensed process unit technologies included in the proposed configuration but the concern
on CCR unit license availability will be remained.
Table 3.2 - Interested Potential Process Licensors
Process Unit Potential Licensors
Hydrotreater RIPI ,HaldorTopsoe,Axens
SRU KTI
HPU HaldorTopsoe

3.5 Project Implementation

NIORDC estimated timetable for the Projects main activities and tasks, following
completion of this Detailed Feasibility Study, the Sponsors initial approach to Lenders and
the Sponsors decision to proceed with the development of the Project, is shown in Figure
3.1. As shown, this timeline assumes that the Projects financing activities will take place in
parallel with the BED and EPC ITB activities so that Financial Close can occur when the
EPC phase of the Project is ready to begin.

Figure 3.1- Refinery Project Implementation Timeline
3.6 Investment Cost Estimate

The table below summarizes the economic parameters for the proposed refinery for the
60,000 BPD investment .

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Table 3.3 - economic parameters
60,000 BPSD Economic parameter
265 CAPEX ($US million)
37.7 OPEX ($US million/year)
1760 Feedstock costs (US$ mil lion/year)
1980 Product revenues (US$ million/year)
45 IRR (%)