Shazand Refinery
The confirmed refinery is located in Arak, Markazi Province, and was historically known as Arak Oil Refinery before its renaming. With nominal capacity of 250,000 barrels per day, it is a material inland asset for central Iran’s refined-product distribution and domestic petrochemical feedstock supply.
Strategic and market-access role
Shazand Refinery matters in the Hormuz Graph as a major inland downstream energy asset in Markazi Province, linked to Arak’s industrial base, central Iran’s fuel distribution, refinery-service demand, and materials flows for surrounding manufacturing markets. Its role is distinct from Persian Gulf refineries because it is shaped by inland logistics, rail-road access, proximity to heavy industry, and national distribution rather than maritime export routes. The asset connects refined-product supply, industrial maintenance, environmental pressure, procurement chains, and enterprise demand across central Iran. Its inland location supports refined-product availability in central Iranian markets and reduces logistics dependence on coastal refining centres.
Operations, capacity & connectivity
Related use cases
Useful for downstream energy analysis, refinery-service market screening, industrial equipment demand mapping, inland fuel-distribution assessment, maintenance partner search, and compliance-risk review. Analysts can use it to evaluate how Shazand links Arak, Qom, Isfahan, Hamedan, and Tehran-facing markets through fuel and industrial supply chains. Commercial assessment should verify procurement channels, maintenance demand, environmental obligations, sanctions exposure, transport arrangements, and reliable local contractors.
Capacity and service area
Capacity: Nominal refining capacity: 250,000 barrels per day (as of 19 July 2026). Service area: Primarily central Iran, including Markazi, Tehran, Qom, Isfahan, Hamedan and Lorestan provinces. The refinery is reported to supply a significant share of domestic gasoline and diesel demand.
Connected modes
Crude supply is connected by pipelines from southern oilfields. Refined products are distributed by road tanker and rail.
Industries served
The refinery supplies refined products and reported feedstocks to petrochemicals. Its outputs also support fuel demand in automotive, agricultural and general manufacturing activity.
Ownership, operation & expansion
Owner and operator
Operator: Imam Khomeini Shazand Oil Refinery Company.
Opening or commissioning
1993.
Constraints, risk & compliance
Operational constraints
Operations depend on crude-pipeline continuity from southern oilfields. Water scarcity in semi-arid Markazi Province may constrain industrial processes, cooling and wastewater management. Maintenance and modernization needs may be affected by access to technology and spare parts.
Key risks and compliance considerations
International sanctions may restrict access to technology, spare parts and foreign investment, with potential effects on maintenance and efficiency. Environmental compliance pressure, particularly concerning air and water pollution, may require additional investment. Changes in domestic fuel consumption and subsidy policy may affect refining margins and operating planning.
Connected Intelligence
Relevant geography, industry, market and execution context for this profile.
Frequently asked questions
Direct answers to the questions most likely to arise when reviewing this profile.
What is the nominal capacity of Imam Khomeini Shazand Oil Refinery?
Its reported nominal refining capacity is 250,000 barrels per day, as of 19 July 2026.
Which markets does Shazand Refinery serve?
It primarily serves central Iran, including Markazi, Tehran, Qom, Isfahan, Hamedan and Lorestan provinces.
How are crude oil and refined products transported at the refinery?
The refinery is connected to crude oil pipelines from southern oilfields, while refined products are reported to move by road tanker and rail.
What are the main operational risks for the refinery?
Key considerations include crude-pipeline continuity, water scarcity, maintenance and modernization needs, sanctions-related constraints on technology and spares, environmental compliance requirements, and changes in domestic fuel demand.