National Iranian Oil Refining and Distribution Company
Encyclopedia
National Iranian Oil Refining and Distribution Company (NIORDC) is part of the Ministry of Petroleum of Iran
Ministry of Petroleum of Iran
The Ministry of Petroleum manages the oil industry, the producer of oil and petrochemical products. MoP is in charge of all issues pertaining to exploration, extraction, exploitation, distribution and exportation of crude oil and oil products. In addition, according to the "", issuing import...

. NIORDC was established on March 8, 1992 and undertook to perform all operations relating to refining and distribution of oil products.

Although NIORDC was formed in the 1990s, the company has actually inherited 90 years of Iran’s oil industries' experiences in the fields of refining
Refining
Refining is the process of purification of a substance or a form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum will burn straight from the ground, but it will burn poorly...

, transfer and distribution of oil products, as well as, engineering and construction of installations of oil industries.

Responsibilities and duties (2009)

  • Refining crude oil and producing a variety of oil products.
  • Transferring crude oil from production bases and “Khazar Terminal” to the refineries and also transferring oil products from refineries and import bases to distribution procurement depots and distribution centres.
  • Performing all refining projects and schemes, transfer and storing.
  • Production, transfer and distribution of 250 million litres of oil products per day.
  • Daily export of around 60 million litres of oil products abroad via oil terminals.
  • Providing different sectors – industry, agriculture and power plants – with fuel and feed regularly e.g. petrochemical complexes.
  • Providing consuming fuel to residential sector, business sector in urban and the peasantry communities all over the country.
  • Providing more than 7 million vehicles – heavy and light – in the transportation sector
    Transport in Iran
    Transport in Iran is inexpensive because of the government's subsidization of the price of gasoline. The downside is economic inefficiency because of highly wasteful consumption patterns, contraband with neighboring countries and air pollution...

     with their required daily fuel.

Installations and capabilities

As at 2010, NIORDC has 19 subsidiaries and affiliated companies, including 9 oil existing refineries. Between 2007 and 2012, oil refining capacity for crude oil and gas condensate will increase from 1600000 oilbbl/d to 3300000 oilbbl/d. By 2009, Iran had a total refining capacity of 1860000 oilbbl/d.
Crude Oil Refining capacity (2009) (in process of being upgraded)
Refinery Installed Capacity (bbl/d)
Abadan
Abadan Refinery
The Abadan refinery was located in Abadan near the coast of the Persian Gulf. It was completed in 1912 and was one of world's largest oil refineries when it was destroyed in 1980 by Iraq in the Iraq-Iran war. Its nationalisation in 1951 prompted the Abadan Crisis and ultimately the toppling of the...

350,000
Isfahan 280,000
Bandar Abbas
Bandar Abbas
Bandar-Abbas or Bandar-e ‘Abbās , also Romanized as Bandar ‘Abbās, Bandar ‘Abbāsī, and Bandar-e ‘Abbās; formerly known as Cambarão and Port Comorão to Portuguese traders, as Gombroon to English traders and as Gamrun or Gumrun to Dutch merchants) is a port city and capital of Hormozgān Province on...

230,000
Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...

 (Shahid Tondgouyan)
220,000 (Euro 5 compliant by 2012)
Arak (Shazand)
Arak, Iran
-Industries:thumb|right|250px|wagon parsArak is one of the main industrial cities of Iran, possessing many plants for heavy industries especially for the metal and machinery industries, including:...

170,000
Tabriz
Tabriz
Tabriz is the fourth largest city and one of the historical capitals of Iran and the capital of East Azerbaijan Province. Situated at an altitude of 1,350 meters at the junction of the Quri River and Aji River, it was the second largest city in Iran until the late 1960s, one of its former...

100
Kermanshah
Kermanshah
Kermanshah is a city in and the capital of Kermanshah Province, Iran. At the 2006 census, its population was 784,602, in 198,117 families.The overwhelming majority of Kermanshahi people are Shi'a Muslims...

40
Shiraz
Shiraz
Shiraz may refer to:* Shiraz, Iran, a city in Iran* Shiraz County, an administrative subdivision of Iran* Vosketap, Armenia, formerly called ShirazPeople:* Hovhannes Shiraz, Armenian poet* Ara Shiraz, Armenian sculptor...

30
Lavan Island
Lavan Island
Lavan Island is an Iranian island in the Persian Gulf. It has an area of 76 km². The island has one of the four major terminals for export of crude oil in Iran. The largest one is in Kharg Island.-See also:*Kookherd*Bastak*Bandar Lengeh...

30
Total: 1.45 Moilbbl/d.

Present Refinery Products - 2007
Oil Products KBPD (thousand barrel per day) Percent
Gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...

283 17%
Gas oil 511 32%
Kerosene
Kerosene
Kerosene, sometimes spelled kerosine in scientific and industrial usage, also known as paraffin or paraffin oil in the United Kingdom, Hong Kong, Ireland and South Africa, is a combustible hydrocarbon liquid. The name is derived from Greek keros...

136 8%
Fuel oil
Fuel oil
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...

457 29%
LPG
LPG
LPG may stand for:* Liquefied petroleum gas* Laboratoire de Planetologie, Grenoble, France* Landwirtschaftliche Produktionsgenossenschaft * Llanfairpwll railway station, Wales; National Rail station code LPG.* LPG...

50 3%
Others 184 11%


Other facilities:
  • Fourteen thousand kilometers of crude oil and oil product transfer pipelines
    Pipeline transport
    Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....

    .
  • 150 pumping stations.
  • Oil industry telecommunication
    Telecommunication
    Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...

     network.
  • Operational zones for pipelines and telecommunication.
  • 35 operational zones for NIOPDC.
  • 220 operational areas for NIOPDC.
  • Storage tank installations with 10 milliard litre capacity (2009). As at 2010, the storage capacity of oil products in the country is around 11.5 billion liters, but it will reach 16.7 billion liters by the end of the Fifth Five Year Development Plan (2010-2015).

Fuel imports

In 2008 Iran has imported nearly 40% of its market needs because of lack of refining capacity and contraband. In 2009, Iran spent paid $11 billion on imported fuel. In 2010, gasoline import declined to 30% of its market needs at 25 million liters of gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...

 and 11 million liters of diesel fuel per day.

As of July 2010, Iran produces between 280000 barrels (44,516,442.6 l) and 285000 barrels (45,311,379.1 l) of gasoline a day and until recently had acquired the remaining 30 percent, which is about 115000 oilbbl/d to 120000 oilbbl/d, through big oil companies.

Major gasoline suppliers to Iran historically have been India, Turkmenistan, Azerbaijan, the Netherlands, France, Singapore, and the United Arab Emirates. The Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....

 reported that Vitol
Vitol
The Vitol group is an energy trading company founded in Rotterdam in 1966. Vitol operates worldwide and, along with Glencore and Trafigura, is one of the world's top three crude oil traders. Vitol's headquarters are located in Rotterdam, the Netherlands and Geneva, Switzerland...

, Glencore
Glencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...

, Trafigura
Trafigura
Trafigura is an Amsterdam-based multinational company founded in 1993 trading in base metals and energy, including oil. the company had equity of more than $2 billion and a turnover of $73 billion that generated $440 million of profit....

 and other (western) companies had since stopped supplying petrol to Iran because of international sanctions
Sanctions against Iran
This article outlines economic, trade, scientific and military sanctions against Iran, which have been imposed by the U.S. government, or under U.S. pressure by the international community through the United Nations Security Council...

. In 2006, Vitol, a MNC
MNC
MNC may refer to:* Media Nusantara Citra, Indonesian media company and owner of RCTI, MNC TV, Sun TV, and Indovision** MNC The Indonesian Channel* Mobile Network Code* Monday Night Combat, a video game for the Xbox 360 and PC...

 based in Switzerland, supplied Iran with 60% of its total gasoline cargo imports. In September 2010, Iran claimed that it has stopped importing gasoline according to the domestic capacity expansion plans.
Iran: Company (Country) Source of Gasoline Imports
2008 2009
BP (UK) CNPC (China)
ENOC (UAE) Glencore (Switzerland)
Glencore (Switzerland) IPG (Kuwait)
IPG (Kuwait) Litasco (Russia)
MEP (UAE) Petronas (Malaysia)
Reliance Industries (India) Reliance Industries (India)
Shell (Netherlands) Shell (Netherlands)
SPC (Singapore) Total (France)
Total (France) Trafigura (Switzerland)
Trafigura (Switzerland) Vitol (Switzerland)
Vitol (Switzerland) Zehnua Oil (China)

New facilities

After completion of 7 new refineries and improvement to the existing refineries at a cost of $26 billion; along with the implementation of the subsidy reform plan to cut demand, it is possible that Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

 will cease being a gasoline importer by 2010-2011 and will become a net exporter by 2013-2015.
New Planned Refineries by the public sector (as at 2010)
Refinery Location Refining capacity Estimated costs Completion date
Khuzestan refinery (privately owned) Arvand Free Zone
Arvand Free Zone
]The Arvand Freezone is a 155 square kilometer industrial and security zone that surrounds Khorramshahr, Abadan, and Minoo Island along the Arvand waterway in Khuzestan Province, Iran....

, near Abadan
Abadan
Abadan is a city in and the capital of Abadan County, Khuzestan Province, Iran. It lies on Abadan Island , from the Persian Gulf, near the Iraqi-Iran border. The civilian population of the city dropped to near zero during the eight-years Iran–Iraq War. In 1992, only 84,774 had returned to live...

 
180000 oilbbl/d. The refinery will refine the heavy crude oil produced in Azadegan
Azadegan
The Azadegan oil field is an oil field in Iran. The field is located west of Ahvaz close to the Iraqi border.-History:The oil field was discovered in 1999. The first exploration well was drilled in the field in 1976, but its discovery was finalized after drilling the second well in 1999...

 and Yadavaran oil fields. It will also produce 10 million liters of super gasoline complying with Euro IV standard, 12.6 million liters of diesel oil, 3 million liters of jet fuel
Jet fuel
Jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is clear to straw-colored in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1 which are produced to a standardized international specification...

, five million liters of liquefied gas, and 440 tons of sulfur.
2.9 billion euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

s
2012
The Persian Gulf Star refinery Assalouyeh  360,000 of gas condensates per day and to produce gasoline, jet fuel, and other valuable products. 2.5 billion euros 2010
Shahriar refinery Tabriz
Tabriz
Tabriz is the fourth largest city and one of the historical capitals of Iran and the capital of East Azerbaijan Province. Situated at an altitude of 1,350 meters at the junction of the Quri River and Aji River, it was the second largest city in Iran until the late 1960s, one of its former...

 
150000 oilbbl/d; gasoline production: 70000 oilbbl/d 1.2 billion euros 2012
Anahita refinery Kermanshah Province
Kermanshah Province
Kermanshah Province is one of the 31 provinces of Iran. The province was known from 1969 to 1986 as Kermanshahan and from 1986 to 1995 as Bakhtaran.-Counties:...

 
150000 oilbbl/d 1.3 billion euros 2012
Hormoz refinery Bandar Abbas
Bandar Abbas
Bandar-Abbas or Bandar-e ‘Abbās , also Romanized as Bandar ‘Abbās, Bandar ‘Abbāsī, and Bandar-e ‘Abbās; formerly known as Cambarão and Port Comorão to Portuguese traders, as Gombroon to English traders and as Gamrun or Gumrun to Dutch merchants) is a port city and capital of Hormozgān Province on...

 
300000 barrels (47,696,188.5 l) of heavy and extra heavy crude oil $4.3 billion 2012
Caspian refinery Gorgan
Gorgan
Gorgan Some east of Gorgan is the Golestan National Park. The city has a regional airport and several universities. Gorgan Airport was opened in September 2005.-Etymology:...

, Golestan Province
Golestan Province
Golestan Province is one of the 31 provinces of Iran, located in the north-east of the country, south of the Caspian Sea. Its capital is Gorgan....

 
300000 barrels (47,696,188.5 l) of crude oil; 20 million liters of gasoline, 11 million liters of gas oil from Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...

 countries with exports to Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

, Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...

 and Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...

 
$4 billion 2013
Pars refinery Shiraz
Shiraz
Shiraz may refer to:* Shiraz, Iran, a city in Iran* Shiraz County, an administrative subdivision of Iran* Vosketap, Armenia, formerly called ShirazPeople:* Hovhannes Shiraz, Armenian poet* Ara Shiraz, Armenian sculptor...

 
120000 oilbbl/d 800 million euros 2012

New Planned Refineries by the private sector (as at 2010)
Refinery Location Refining capacity Estimated costs Completion date
Yasouj refinery Yasouj  150000 oilbbl/d. The refinery will produce petrol, gasoil, kerosene, furnace oil, liquefied gas, asphalt, and sulfur. $2.2 billion 2014

Policy

  • Providing desirable fuel supplying services and supplying feed of industries and factories all over the country in due time.
  • Reducing consumption rate through employing energy consumption management and raising export rate to make foreign currency.
  • Reducing waste materials through improving efficiency in refining and distribution system.
  • Reducing environment pollution to reach stable development.
  • Raising human force productivity and promoting level of training.
  • Increasing output of refinery facilities and transfer are distribution of oil products.
  • Reducing cost of production, transfer and distribution of oil products.

Subsidiary companies

The NIORDC subsidiaries are as follows:
  • National Iranian Oil Products Distribution Co.
  • Management of Construction & Development of "CNG
    Compressed natural gas
    Compressed natural gas is a fossil fuel substitute for gasoline , diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill...

    " Stations Co.
  • National Iranian Oil Engineering and Construction Co. (NIOEC)
  • Oil Pipeline and Telecommunication Co.
  • Oil Refining Co.

See also

  • Petroleum industry in Iran
    Petroleum industry in Iran
    In 2004 Iran produced 5.1 percent of the world’s total crude oil , which generated revenues of US$25 billion to US$30 billion and was the country’s primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7 percent of gross domestic product . However, the...

  • Abadan Refinery
    Abadan Refinery
    The Abadan refinery was located in Abadan near the coast of the Persian Gulf. It was completed in 1912 and was one of world's largest oil refineries when it was destroyed in 1980 by Iraq in the Iraq-Iran war. Its nationalisation in 1951 prompted the Abadan Crisis and ultimately the toppling of the...

  • List of oil refineries
  • 2007 Gas Rationing Plan in Iran
    2007 Gas Rationing Plan in Iran
    2007 Gasoline Rationing Plan in Iran was launched by president Mahmoud Ahmadinejad's cabinet to reduce that country's fuel consumption. Although Iran is one of the world's largest producers of petroleum, rapid increases in demand and limited refining capacity has forced the country to import about...

  • Ministry of Petroleum of Iran
    Ministry of Petroleum of Iran
    The Ministry of Petroleum manages the oil industry, the producer of oil and petrochemical products. MoP is in charge of all issues pertaining to exploration, extraction, exploitation, distribution and exportation of crude oil and oil products. In addition, according to the "", issuing import...

  • National Iranian Oil Company
    National Iranian Oil Company
    The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...


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