Iran has started construction works on the Siraf refinery, which will be the largest in the country.
Once operational, the facility will have a daily capacity to convert about half a million barrels of condensate to exportable products for Asia, reports state run Press TV.
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Construction of the refinery is expected to involve an investment of $2.8bn, which is being provided by private players in the country.
Over the next eight months, basic designing works will be carried on at the facility along with construction of joint processing, utility and back-up units.
Construction works for the refineries will start after that.
The refinery will house eight processing units, each having a daily capacity to process 60,000 barrels of gas, which is a light oil extracted with gas.
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By GlobalDataAbout 60% of the feedstock at the plant will be processed to 270,000 bpd of naphtha which Iran will ship to Asian chemical makers, who will be converting it into ammonia for fertilisers or plastic-based products such as ethylene or other olefins.
According to Siraf refinery managing director Ali Reza Sadeq-Abad, it will also offer 140,000 barrels of gasoil, 30,000 barrels of liquefied petroleum gas and 40,000 barrels of kerosene.
The country intends to increase its condensate exports by 100% in the future, which is likely to increase its naptha exports to Asia which has rising demands for it.
In 2014, Iran had doubled its exports for condensate to 200,000bpd which increased its total crude oil exports to 1.5bpd.
