Iran plans to increase oil storage capacity to 32M barrels
Tehran, Iran, Oct. 22
By Milad Fashtami - Trend:
Iran plans to increase its oil storage capacity to 32 million barrels, Managing Director of Iranian Oil Terminals Company (IOTC) Seyyed Pirouz Mousavi said.
He said that Iran has launched a test operation of four oil storage facilities with total capacity of 4 million barrels in the Kharg Island, located in the Persian Gulf, Iran's IRNA News Agency reported on October 22.
The facilities reportedly came on steam at the cost of 420 billion rials (about $34.25 million). The construction plan of the facilities started in 2008.
"Once the mentioned four facilities completely come on stream, Iran's total oil storage capacity would stand at 28 million barrels," Mousavi said.
He added that based on global standards an oil-exporting country needs to have the storage capacity enough for 15 days of exports.
"So we need to build more storage facilities with 4-million barrels capacity, to reach the standard level of 32 million barrels," he added.
He went on to note that the company has recently exported three consignments of gas condensates from the Phase 12 of giant South Pars gas field.
Mousavi said in June that the construction of the Jask Island oil export terminal, located in the Sea of Oman, will definitely take more than three years.
"Currently the preliminary studies of the project are underway," he said. "The studies will be completed in one year. Foreign companies' participation in financing the project is also being studied."
Akbar Torkan, the secretary of Iran's Free Trade Zones Coordination Council, said on June 18 that Jask oil terminal will be Iran's second oil export terminal.
Torkan previously said that a pipeline with the length of 2200km transfers Iranian crude oil to the Sea of Oman shores, so it is planned to establish oil storage and export facilities on the Jask Island.