Iran Allocates $2.2 billion to Bidboland-II Gas Refinery

Five Iranian banks have signed a cooperation agreement with the country’s Persian Gulf Petrochemical Industry Company to inject $2.2 billion to Bidboland-II gas refinery project.

Kamel Taqavinejad, managing director of Sepah Bank, said a consortium has been formed with Mellat, Tejarat, Industry and Mine, and Parsian banks to establish the refinery in the southwestern province of Khuzestan, Shana news agency reported on December 6.

The project will bring in an annual $750 million profit as well as $1.5 billion value-added products, he noted.

By the end of the current Iranian fiscal year (March 2016) about 350 million euros worth of equipment will be purchased for the refinery,” he said.

“The refinery will come on stream in less than three years provided that the required budget is timely secured.”

Bidboland refinery is projected to produce refined gas, ethane, propane, butane, and condensate, and will provide feedstock for a number of petrochemical units in the region.

Iran currently produces 550 mcm/d of sweet gas.