Iran's gasoline output has come under pressure after recent US-Israeli attacks cut condensate output at South Pars by around 230,000 b/d, according to NIORDC.
The giant offshore field, which Iran shares with Qatar, feeds roughly 60pc of the country's gasoline production, head of state-owned refining company NIORDC, Mohammad Sadegh Azimifar said on 10 August. Iran's refining, fuel storage and transportation infrastructure sustained around $1bn of damage in the attacks, Azimifar said. The attacks destroyed 52 of the 97 tanks at fuel depots in Tehran and Alborz provinces, wiping out around 1bn litres of storage capacity and knocking out some distribution facilities.
The strikes have hit refining capacity directly. The Lavan refinery produced about 3mn l/d of gasoline before the war, but now operates at roughly half that following drone attacks in April, according to state-owned news agency Irna.
Together with the South Pars condensate loss, the damage has pulled domestic gasoline output lower just as demand climbs. Iran's maximum supply capacity for gasoline and diesel is about 110mn l/d each, against daily gasoline demand of above 130mn l/d and diesel demand of 120mn l/d. The deficit widened during peak holiday periods, when consumption jumped to around 10pc above the annual average.
Iran could require around five to seven MR-sized gasoline cargoes, equivalent to roughly 50,000-55,000 b/d in August, to cover the widening supply deficit, according to market participants.
Meeting that requirement has become difficult as import routes come under strain. Much of Iran's fuel imports arrived via the southern route, but the blockade has now restricted those flows, Azimifar said. The domestic distribution network has been hit too, with pumping stations at Rey that move products from southern Iran towards Tehran and the north "completely destroyed", he said.
Despite the damage, Iran is pressing ahead with delayed downstream projects, with the Mehr refinery and a gasoline quality upgrade at the Tehran refinery both due on line by the end of the year, Azimifar said.
