Iran shares investment data on Goreh-Jask oil transfer project

Business Materials 25 January 2021 10:13 (UTC +04:00)
Iran shares investment data on Goreh-Jask oil transfer project

BAKU, Azerbaijan, Jan. 25


The total investment required for the implementation of the Goreh-Jask project is $2 billion, of which the share of domestic production is estimated at 95 percent, the CEO of the Iran Petroleum Engineering and Development Company said.

"Due to the sanctions, it was not possible to supply the pipes needed for the Goreh to Jask pipeline from abroad, therefore the necessary studies for the construction of the pipeline in the country began," Touraj Dehghani said, Trend reports citing IRNA.

He went on to say that the slabs for sour gas pipelines were produced domestically since the beginning of the last Iranian year (started on March 21, 2018, to March 2019).

"Several hundred kilometers of piping are done annually in the oil industry and most of it is produced domestically," he said.

"Sanctions have kept us on the path to self-sufficiency and domestic manufacturing," he said. "The issue of domestic manufacturing has various dimensions. Although special consideration should be given to competitive advantage, Iran's situation is special because of sanctions."

Dehghani emphasized that in some cases, even if the domestic cost is higher, domestic production must be considered.

He said that the budget and credit for the construction of the Goreh-Jask pipeline was $ 2 billion. "Of this amount, $600 million was for the supply of pipes. The needed valves are produced in the country up to 90%."

He went on to say that a total of 95 percent of this project is domestically made, which is a new record. Dehghani continued that the first phase of the project is to be launched by the end of the current Iranian year (ends on March 21, 2021).

Goreh-Jask oil transfer project is going to provide Iran with an alternative route for the country’s crude oil exports that are currently carried out through the Strait of Hormuz.

In the first phase, this project will have a capacity to transfer over 300,000 barrels of crude oil per day from Goreh to Jask oil terminal, the transfer capacity of the pipeline, however, can be increased up to 30 million barrels per day in the second phase of the project.