In 2014, Petroleum Ministry of the Islamic Republic of Iran planned to develop a complex known as “Siraf Refining Park” which will be located in Iranian Coast of the Persian Gulf at the Tombak Region (50 km West of Assaluyeh). Hydrocarbon condensate feed will be mainly supplied from existing gas refineries in mentioned region. This project is one of the largest in the world and included eight condensate refineries and due to its significance, it is called the Octopus of Persian Gulf.
The Siraf refineries complex consists of eight independent gas condensate refineries with the total capacity of 480,000 BPSD. It is located at the Siraf region of Bushehr province, between 13th and 19th phases of the South Pars gas field over an area of approximately 300 hectares. This location has suitable access to the natural gas Iranian Gas Trunk-line (IGAT) and gas condensate as feed for the refineries. Moreover, the other available infrastructures such as berth and jetty, sea water intake, national power grid, etc. reduce the amount of total investment cost of this complex by almost USD 1 billion.
The Complex will be completely implemented by the private sector and aims to prevent further sales of crude in favor of selling the end products. The total capacity of 480,000 BPSD will produce a daily total of (8×1,912) barrels of LPG, (8×15,071) barrels of light naphtha, (8×20,998) barrels of heavy naphtha, (8×10,236) barrels of kerosene (jet A1), and (8×10,835) barrels of gas oil with Euro-V specifications.
In comparison with similar refineries project in the world, Siraf complex has notable advantages such as; five percent discount on gas condensate feed (FOB PG) price, ten years tax holiday, VAT free, proper access to power grid, natural gas pipeline as fuel, gas condensate as feed, exporting port and sea water. Due to these advantages, the rate of return on this project reaches 22%.