SHANA - Iran's Shiraz Refinery has signed a deal with UK's Honeywell UOP for buying the license and basic design of a unit to produce Euro-5 gasoil, the refinery's CEO said.

UOP is a leading international supplier and technology licensor for the petroleum refining, gas processing, petrochemical production and major manufacturing industries.

Rehim Shamsedini, the CEO of Shiraz Refinery, said the deal concerns license purchase and basic design of a plan to promote the quality of petroleum products produced by the refinery.

The project is to be developed for production of 26,000 barrels per day of Euro-5 gasoil, the CEO said.

Accordingly, a hydrogen refining unit for gasoil will be built in the refinery to improve the quality of it output by reducing the gasoil's sulfur content consistent with the required standards.

Besides reduction of sulfur content of the gasoil, its Cetane number will increase from 2 to 5, he added.

Cetane number, Cetane rating or CN is an indicator of the combustion speed of diesel fuel and compression needed for ignition.

Currently, the plant is being fed by 60,000 b/d of crude oil and supplies 26,000 b/d of gasoil with around 6,000 ppm of sulfur.

Once operational, the unit will bring the gasoil's sulfur content to 10 ppm.