Operations to extend an oil pipeline from Bandar Abbas in Hormozgan Province to Rafsanjan County in Kerman have registered a work-in-progress rate of 52%, the project operator at the National Iranian Oil Engineering and Construction Company said.
“The project is aimed at boosting oil derivatives transferring capacity from the Persian Gulf Star Refinery in Bandar Abbas by 48 million liters per day,” Ali Khanipour was also quoted as saying by the Oil Ministry’s news portal Shana.
The plan entails laying a 250-kilometer 26-inch pipeline at an estimated cost of $90 million, he added, noting that the venture is being undertaken by domestic firms, Tadbir Energy Development Group and Pars Consulting Engineers Company.
The new pipeline will replace the old pipe, increase the speed of oil byproducts’ delivery and reduce delivery time.
Khanipour said the delivery of 48 million liter of derivatives by trucks will cost $150 million per year, which can be saved upon the project’s completion by the yearend.
In other words, using the pipeline as an alternative to oil transport by road will help reduce transportation costs.
Based on the National Iranian Oil Refining and Distribution Company data, the output of petroleum products such as gasoline, diesel and kerosene increased by 6% in Iranian refineries in 2021 compared to a year ago.
In 2020, refineries received 2.045 million barrels per day of feed, including crude oil and gas condensate, while the figure reached 2.710 million bpd in 2021.
This indicates a 6% increase in the feedstock of the country's refineries, which consequently led to a rise in the output of petroleum products.
Hauling oil products via pipelines reduces the possibility of delays that normally occur due to road closures when the regions are blanketed with snow.
One key advantage of using pipelines is in the environmental sphere. Pipelines cause very little, if any, damage to the environment or air pollution whereas the huge tankers and gas-guzzlers plying the national highways 24/7 emit excessive amounts of CO2 and worsen air pollution.
